Europe’s Industrial Act Divides Nations Over ‘Made in Europe’ Rule
A new European industrial policy has sparked division among member states. The proposed 'Made in Europe' rule, which favours EU-based bidders in public contracts, faces opposition from Germany while receiving strong backing from France. The debate centres on costs, competitiveness, and the future of green technology in Europe.
The Industrial Accelerator Act, designed to boost demand for clean, EU-made products, has hit a roadblock. Originally set for approval, the legislation was delayed until at least January 28, 2026. Among its goals are faster approvals for modernising and decarbonising industrial plants, as well as a new label for climate-friendly steel and cement production.
The most contentious part of the Act is the 'Made in Europe' requirement in public tenders. This clause, pushed by French industry commissioner Stéphane Séjourné, would give EU-based suppliers an edge in government contracts. However, nine member states warn it could inflate prices, weaken competitiveness, and discourage investment.
Friedrich Merz, a leading German politician, has openly opposed the measure. His stance aligns with German car manufacturers, who fear the policy could disrupt supply chains. Meanwhile, French President Emmanuel Macron supports the 'Buy European' push—particularly for IT solutions—arguing it strengthens domestic industries.
European Commission President Ursula von der Leyen has stepped in to temper the proposal’s stricter elements. Her intervention follows concerns that an overly aggressive approach could backfire, harming rather than helping Europe’s industrial ambitions.
The postponed Act leaves key decisions on green technology and procurement rules unresolved. If implemented, the 'Made in Europe' mandate could reshape public contracts but risks higher costs and reduced competition. The final outcome will depend on whether member states can reach a compromise before the 2026 deadline.
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