The European Commission's proposal for a 'Made in Europe' preference in public procurement is generating significant lobbying efforts from EU capitals and international partners. Designed to bolster European industries against competition from China and the United States, the plan would favor products manufactured within Europe for public contracts and support schemes.
Critics argue the initiative is protectionist, prompting several EU member states to advocate for a broader definition of 'made in Europe' to include allied nations. The Industrial Accelerator Act (IAA), intended to define these criteria, has reportedly faced further delays, with its presentation now uncertain despite earlier scheduling.
A leaked draft of the IAA identifies strategic sectors such as chemicals, automotive, AI, and space for this preference. It proposes specific EU-origin thresholds, including 70% for electric vehicles, 25% for aluminum, and 30% for plastics in windows and doors.
This draft has met strong opposition. Nordic and Baltic nations warn that stringent 'made in Europe' rules could hinder investment and restrict access to advanced technologies from non-EU countries. Recent reports suggest the Commission may favor a more inclusive approach, open to 'like-minded partners' with reciprocal trade agreements and those contributing to the EU's economic security.
The United Kingdom has expressed significant concerns about the potential for protectionism. British officials emphasize the deep economic ties between the EU and UK, noting that the EU is the UK's largest export market. They also highlight London's capital markets as a potential source of investment for European industry.
The Commission is reportedly considering its next steps, aiming to present a proposal before an upcoming EU summit on competitiveness. However, internal pushback from the Trade Directorate-General, traditionally a proponent of open markets, adds another layer of complexity.
France, a long-standing supporter of the 'made in Europe' concept, believes it has gained enough momentum to become a reality. EU industry chief Stéphane Séjourné acknowledged that implementing such a significant shift in Europe's economic doctrine requires considerable time and effort to achieve a unified and effective strategy.