Luxembourg Welcomes Resolution of EU Territorial Supply Restrictions

On Thursday 22 May 2025, Luxembourg’s Minister of the Economy, SMEs, Energy and Tourism, Lex Delles, attended the European Union’s (EU) Competitiveness Council meeting in Brussels (Belgium).

Luxembourg’s Ministry of the Economy reported that the meeting, which focused on the internal market and industrial policy, saw the European Commission’s Executive Vice-President for Prosperity and Industrial Strategy, Stéphane Séjourné, present the new Commission strategy for the future of the European internal market. The strategy outlines concrete measures to remove remaining barriers while promoting both harmonisation and simplification of regulations.

Minister Delles welcomed the announcement that the long-standing issue of territorial supply restrictions would finally be addressed at the European level. Emphasising the urgency of the matter, he said: “Territorial supply restrictions deprive retailers of the freedom to source goods from the country of their choice, creating inefficiencies that lead to fewer product options and higher prices for consumers.”

According to a 2023 survey by market research and polling organisation, ILRES, 77% of Luxembourg companies identified territorial supply restrictions as a significant problem and called for their elimination. The European Commission has estimated these restrictions cost European consumers €14 billion annually.

The ministry added that following years of efforts, notably from Luxembourg, the Commission announced plans to introduce a legislative initiative aimed at eliminating these practices. Minister Delles described the development as “a major success to see this issue become a European priority”. He stressed that only European legislative action could resolve the problem. During a bilateral meeting with Vice-President Séjourné, Minister Delles reiterated that it is unacceptable for such practices to cause higher prices and limited product choices for European consumers. The ministry noted that the issue came up in discussions with Belgian Deputy Prime Minister David Clarinval.

The ministry reported that at the Competitiveness Council meeting, ministers also discussed how best to support energy-intensive European industries such as steel, cement and glass. Minister Delles remarked: “The main obstacle to competitiveness is energy cost.” He also stressed the need for substantial investment in renewable energy and highlighted opportunities to back industrial decarbonisation projects, including through the new State aid regulatory framework. 

Moreover, Minister Delles reiterated that promoting green product manufacturing in Europe is not enough and that demand must also be ensured. He said: “Working on demand across all sectors is essential to secure the future of industrial production in Europe.”