The European Union proposes the "Industrial Accelerator Act" to promote "EU Manufacturing"

The European Commission announced the “Industrial Accelerator Act” on the 4th, proposing the introduction of requirements such as “EU Manufacturing” in public procurement and public support programs to enhance value creation within the EU and strengthen its industrial base.

The Commission’s press release stated that the “Industrial Accelerator Act” aims to increase the manufacturing sector’s share of the EU’s GDP to 20% by 2035. Data shows that in 2024, manufacturing accounted for 14.3% of the EU’s GDP.

The release said the law introduces certain “EU Manufacturing” requirements for public procurement and support programs, applicable to strategic industries such as steel, cement, aluminum, and automobiles, with potential expansion to other energy-intensive sectors like chemicals when appropriate. The law also sets additional conditions for major investments exceeding 100 million euros in EU strategic industries: for example, if a single third country holds more than 40% of global capacity in the relevant field, the investment must include technology and knowledge transfer, comply with local requirements, and ensure that at least 50% of the employed staff are EU nationals.

Since its inception, the “Industrial Accelerator Act” has sparked controversy both inside and outside the EU. Originally scheduled for introduction last year, the measures were delayed multiple times due to differing positions among member states. The US, UK, and others have also expressed concerns, believing that strengthening “EU Manufacturing” in public procurement and raising localization thresholds could increase corporate costs and create new trade barriers.

According to the release, the next step will be to submit the new proposal for review and negotiation by the European Parliament and the Council of the European Union.

(Source: Xinhua News Agency)