EU Proposes "Industrial Accelerator Act" to Promote "Made in EU"

On the 4th, the European Commission unveiled the "Industrial Accelerator Act," proposing the introduction of requirements such as "Made in the EU" in public procurement and public support programs to enhance the EU's internal value creation capacity and consolidate its industrial foundation.

A press release issued by the European Commission that day stated that the "Industrial Accelerator Act" sets a goal to increase the manufacturing sector's share of the EU's Gross Domestic Product (GDP) to 20% by 2035. Data shows that in 2024, manufacturing accounted for 14.3% of the EU's GDP.

The release noted that the act introduces a certain degree of "Made in the EU" requirements for public procurement and public support programs, applicable to strategic industries such as steel, cement, aluminum, and automobiles, and can be extended, where appropriate, to other energy-intensive sectors like chemicals. The act also imposes additional conditions on major investments exceeding €100 million in EU strategic industries: if a single third country accounts for more than 40% of global production capacity in the relevant field, investment projects must involve technology and knowledge transfer, comply with local requirements, and ensure that at least 50% of the employees hired are EU citizens.

Since its inception, the "Industrial Accelerator Act" has sparked controversy both within and outside the EU. The originally planned measures, scheduled for introduction last year, were repeatedly delayed due to differing positions among member states. Countries such as the United States and the United Kingdom have also expressed concerns about the rules, arguing that strengthening "Made in the EU" requirements in public procurement and raising localization thresholds could increase corporate costs and create new trade barriers.

According to the release, the next step will involve submitting the new proposal to the European Parliament and the Council of the European Union for deliberation and consultation.