The European Commission will once again delay the presentation of the bloc’s plan to re-industrialise the European economy, Industrial Strategy Commissioner Stéphane Séjourné’s cabinet said on Monday, signalling that divergences among European Union member states remain.
The French-led Industrial Accelerator Act (IAA) was originally scheduled to be presented in December, but resistance from other countries and even within the European Commission has been consistent, pushing the proposal to 4 March after three failed attempts.
“Following the discussion of those past days, the presentation of the IAA is now scheduled for 4 March. We hope that this additional week of internal discussions will allow us to make the proposal even more rock-solid,” Séjourné’s cabinet told reporters.
Along with resistance in the EU itself, Brussels is now facing opposition from the United States, with the country’s ambassador to the EU saying Washington rejects any efforts to incorporate European preferences into the bloc’s public procurement rules.
“We fully support European rearmament and a revitalisation of the European defence industrial base. However, European preference in the EU Defence Procurement Directive would undermine member state flexibility to make national procurement purchases,” Andrew Puzder wrote on X on Friday.
In a leaked document seen by Euronews, the EU executive touts the creation of voluntary labelling schemes for “Made in the EU” low-carbon products to help assess industry engagement, with the steel industry singled out in particular.
“The proposal for a label on the carbon intensity of steel is needed to provide a common EU approach on calculating GHG emissions, facilitating the differentiation of low-carbon steel from high-carbon alternatives,” reads the document.
Tristan Beucler, Industry Analyst at the think tank Strategic Perspectives, urged the EU executive to announce the law as soon as possible, saying that all the conditions for an effective IAA that supports EU strategic industries are met.
“There is strong alignment among national governments, cross-party support in the European Parliament, and calls from across the EU’s industrial value chains for this policy. Now, the European Commission can make sure its internal bureaucracy does not stand in the way of a much-needed industrial policy,” Beucler said.
‘Made in Europe’ thresholds
The Commission is also expected to propose a target for the share of European products to be domestically produced under the upcoming law.
The controversial law lists strategic sectors targeted for a European preference, among them chemicals, automotive, AI, space and defence. It also proposes EU-origin thresholds of 70% for electric vehicles, 25% for aluminium and 30% for plastics used in windows and doors.
The rationale for the French-led proposal is that by increasing the share of EU-made and low-carbon products in domestic consumption, the IAA will boost demand within the European market, strengthen industrial competitiveness, and reduce dependence on high-carbon or imported alternatives.
However, the draft proposal has drawn intense pushback.
Nordic and Baltic states warn that a strict “Made in Europe” regime could deter investment and limit EU companies’ access to cutting-edge technologies from non-EU countries.
In a separate leak reported by Euronews, the Commission appeared to lean toward the German position: a European preference for likeminded partners with reciprocal procurement commitments and those that contribute to “the Union’s competitiveness, resilience and economic security objectives”.
The UK has also expressed concerns about protectionism under the upcoming proposal, with British officials stressing that the EU and UK economies are highly intertwined.
“It’s not the moment to mess with what is already working,” one official told Euronews.
In particular, the EU remains the largest export market for British cars, while several European manufacturers produce vehicles in the UK, which in 2024 was the EU’s second-largest export destination after the US.
Speaking to Euronews, an EU diplomat said that the delay to the proposal’s unveiling should not be read as a sign of trouble.
“One week is not relevant, the rationale is likely the same. They (the Commission) must be deciding who the like-minded partners are.”
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