The European Commission has developed a new emergency tool to protect supply chains during a crisis that will give the EC new powers, including requiring the stockpiling of critical goods and directing companies to prioritize certain orders, Politico reports.

The new emergency single market tool aims to ensure the EU could provide essential goods during an emergency, such as the recent pandemic that shut down some supply chains, the European Commission said.

The new instrument will provide us with an inclusive, transparent and quick way to deal with future crises, Vice President Margrethe Vestager said.

The Commission will be able to force EU countries to stockpile critical goods. Firms will have to disclose some information about production capacity and stocks of crisis-relevant goods, and prioritize orders for key goods. Companies will be fined for noncompliance.

"This instrument is the opposite of a planned economy," Internal Market Commissioner Thierry Breton said, noting that its goal is not to constantly monitor economic players. This seems to address the fear voiced by some EU member states that the text goes too far in allowing the Commission to adopt emergency measures. "It's fair, balanced and transparent," Breton noted.