Brussels presents weakened draft for 'Made in Europe' industry quotas - EU softens 'Made in Europe' quotas after Germany's pushback on steel rules
The European Commission will present a revised 'Made in Europe' quotas proposal this Wednesday. The updated plan scales back earlier demands, particularly excluding mandatory quotas for steel. Germany's push for minimal restrictions has shaped the new approach.
France had originally called for strict quotas requiring a set share of European-made components in public contracts. Industry Commissioner Stéphane Séjourné initially backed these measures, including mandatory rules for steel. But Germany, led by Chancellor Friedrich Merz and Economics Minister Katherina Reiche, resisted broad quotas.
The German government argued that such rules should only apply in strategic sectors like batteries or steel—and even then, as a last resort. Officials criticised expansive French proposals as overly protectionist. Their stance led the Commission to dilute the plan, focusing quotas on critical areas such as infrastructure projects and automotive subsidies rather than private markets.
Beyond quotas, the upcoming legislation will introduce other protections for European industry. These include stricter controls on foreign investments from outside the EU.
The final proposal reflects a compromise between French ambitions and German resistance. Steel, once a key focus, will no longer face mandatory quotas. The revised rules will instead target specific public contracts and subsidies while tightening oversight of third-country investments.
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