EU delays 'Made in Europe' plan over internal disagreements

The European Commission has delayed publication of long-awaited legislation on the Industrial Accelerator Act (IAA). The delay is reportedly due to internal disagreements over the scope of controversial provisions known as “Made in Europe”. The Reuters news agency reported on the difficulties surrounding the legislation.

The proposal, now scheduled for publication on 4 March, aims to prioritise technologies and components made in Europe, particularly those produced as part of publicly funded projects. The initiative also includes support for clean technology sectors, from which the supported products should originate.

The IAA is part of the Commission’s broader Clean Industrial Deal plan, which aims to strengthen the EU’s competitiveness. The Union’s industry faces strong competition, particularly from the United States and China. At the heart of the new legislation are measures that would introduce minimum thresholds for locally made parts in sectors such as battery and solar-panel manufacturing, and wind and nuclear power generation. Supporters of the plan say these requirements are necessary to protect European manufacturers from cheaper imports, as products made abroad are often subject to less stringent environmental regulations.

Some measures under the IAA have, however, met with opposition both within the Commission and among the industries concerned. Countries such as France are pushing for stricter criteria favouring European products, which they consider essential to protecting domestic industry. Other countries, including Czechia and Sweden, warn that strict “buy local” rules could deter foreign investors, raise public procurement costs and ultimately weaken the bloc’s global competitiveness.

Industry groups have also expressed concern about the geographical scope of the proposed rules. Carmakers and other manufacturers have called on the Commission to extend their reach beyond the EU and EFTA countries—Iceland, Norway, Switzerland and Liechtenstein—and include key supply-chain partners such as the United Kingdom and Turkey. They say excessively restricting access could disrupt established production networks and raise costs.

The Commission has therefore sent the proposal back for revision, expressing hope that another week of internal talks will improve it. Observers note that the Commission will seek to finalise the proposal before the European Council meeting on 19 March. Some lobbyists fear that if a compromise text is not presented by then, the initiative could be stalled or even derailed entirely.