Functioning markets constitute the basis of security of supply

Basically, security of supply is a natural characteristic of the national economy. If the economy is competitive and in equilibrium, the security of supply rests on solid ground. If economic developments are unfavourable, the security of supply cannot be maintained for the long term.

Under normal circumstances, public authorities' measures for maintaining security of supply consist of risk analysis and  countermeasures in respect to individual risk concentrations. In order to safeguard a functioning society even under emergency conditions, public administration must be prepared to temporarily manage the economy by administrative decisions in situations where the markets do not ensure an adequate security of supply.

A wide and continuously increasing range of measures is available for safeguarding security of supply

Security of supply, previously known as defence economy, traditionally represents an adequate supply of materials. Sufficient material resources had a decisive impact on the outcome of the great wars in the 20th century. Access to materials was also the crucial question in the oil crises of the 1970s and 1980s. At that time measures for safeguarding security of supply consisted of emergency planning and stockpiling.

Because of social and economic diversity and interdependence, new risks have emerged in addition to the traditional ones. The risk of terrorism is an example of recent developments.

In order to counteract new threats, new measures are required to safeguard social and technical infrastructure, and to facilitate the access to and distribution of information under any circumstances.

Presently, there is a large range of means and methods for meeting potential threats. Emergency stockpiling is one method. Logistics planning, auditing of economic processes and technical emergency measures constitute new methods. Intensified international co-operation constitutes one dimension of these new means and methods and it renders them even more effective. 

Following measures for safeguarding security of supply are used:

1) Improvement of material security of supply:
• stockpiling raw materials and energy products
• safeguarding access to domestic raw materials
• replacing foreign means of production.

2) Maintaining functioning enterprises
• emergency planning in enterprises
• auditing provision for emergency
• supporting production capacity
• maintaing of know-how
• reserving production capacity by contracts for emergency situations.

3) Improving organisational preparedness to act
• analysis and identification of threats
• production management, prioritization of consumption and use.

4) Establishment and maintenance of technical reserve systems
• safeguarding the functioning of communication networks
• safeguarding data processing, e.g. by means of back-up systems
• looping network for producing, transferring and distributing electricity.

5) Safeguarding logistics
• managing logistic processes within various sectors of security of supply by technical and other means.

6) International arrangements for security of supply
• bilateral and multilateral security of supply agreements
• collective co-operation; IEA/IEP-Agreement, EU and NATO/EAPC.

These special measures will be applied only after exhausting general methods for economic management, such as fiscal policy and monetary, foreign exchange, and trade policies that are applied at the EU level.