The European Commission will present on Wednesday its proposals on reindustrializing the continent and combating Chinese competition, grouped together in the „Made in Europe” strategy, according to AFP, writes Agerpres.
The so-called „industrial acceleration” law, supported by European Commission Vice-President Stephane Sejourne, aims to preserve and decarbonize key sectors, such as the automotive industry, which fear they will be wiped out by Chinese competition, while already facing the challenges of the green transition and very high energy prices in Europe.
The main provision of the plan is the introduction of a „European preference,” a measure long considered taboo in Europe due to its protectionist nature. This involves requiring companies in sectors considered strategic to carry out part of their production in Europe or to source components locally when receiving public funding.
This mechanism copies similar laws in the United States and China, as Sejourne pointed out in an opinion piece signed by 1,000 European company directors.
However, the announcement of the bill, initially expected at the end of 2025, has been postponed several times due to disagreements between member states and even within the Commission on the usefulness, scope, and limits of the measure.
French President Emmanuel Macron defended European preference in the most strategic sectors, stating that „otherwise, Europeans will be sidelined.”
„This is a major and necessary turning point,” says Joseph Dellatte of the Montaigne Institute, pointing out that public procurement accounts for around 15% of the European economy and can therefore play a decisive role in helping to relocate industrial activities.
But „if the goal is to prevent China from destroying industries, I think there are better tools,” counters Niclas Poitiers of the Bruegel think tank, pointing out that Brussels has a range of measures against foreign subsidies that distort competition.
These questions have fueled debates among the 27 member states in recent months, even if the urgency to act has ultimately convinced the most reluctant, Germany and the Nordic countries, to support the „Made in Europe” initiative, provided that this measure is strictly targeted.
The European Commission has therefore scaled back its ambitions for the initial project in terms of the list of sectors targeted.
According to a version of the text seen by AFP on Tuesday, the law proposed by Brussels will make it mandatory to use low-carbon steel in construction and infrastructure projects that receive public funding, but without requiring it to be „Made in Europe.” This perspective has been strongly criticized by Eurofer, the organization of European steel producers.
There is also no mention of a local content requirement for chemicals or plastics.
On the other hand, the automotive industry is expected to be among the sectors targeted, as are decarbonized energy technologies (solar panels, batteries, etc.).
However, by far the most debated issue, including within the Commission, is the geographical scope of the „Made in Europe” plan.
Berlin and other European capitals have insisted that companies manufacturing in certain partner countries should not be excluded from the scheme, fearing trade reprisals and supply chain disruptions. Countries with close ties to the EU, such as the UK, Turkey, Japan, and Switzerland, are hoping for such preferential treatment.
The draft law could also impose local benefit requirements, particularly in terms of employment and research and development, on foreign companies wishing to make certain investments in Europe, according to the text consulted by AFP. Finally, the plan will include more consensual measures aimed at facilitating the construction or expansion of factories by simplifying and speeding up administrative procedures.
AGERPRES
