The EU Commission shared the Industrial Accelerator Bill, which had been postponed several times before, with the public.
The bill, which envisages introducing a “Made in EU” requirement in public procurement and state supports, aims to strengthen Europe’s industrial base and combat the unfair competitive environment on a global scale.
Representing a new era in the EU’s industrial policy, the regulation aims to increase production on the continent and reduce foreign dependency in strategic sectors.
THE SHARE OF THE MANUFACTURING INDUSTRY WILL BE INCREASED
Prepared to strengthen Europe’s industrial base, expand businesses and increase employment, the bill envisages increasing the share of the manufacturing sector in the total Gross Domestic Product (GDP) in the EU from 14.3 percent to 20 percent by 2035. The bill also aims to increase Europe’s economic resilience, competitiveness and economic security.
The regulation includes the manufacturing industry, especially energy-intensive sectors, the automotive value chain and net zero technologies that will support clean industrial transformation. In this context, low carbon requirements are being introduced for steel used in the automotive and construction sectors, while the “Made in the EU” condition is planned to be implemented for some products used in public tenders.
The bill draws attention with the conditions it brings, especially in energy-intensive sectors such as steel, cement, aluminum and chemicals, as well as net zero emission technologies, automotive and automotive components production. European production criteria are also envisaged in public procurement.
Within the scope of the regulation, in some strategic purchases made with public resources, a certain part of the production will have to be carried out in the EU. A minimum EU production share will be required in the production or purchase of electric cars, wind turbines and other critical technologies. This step also aims to maintain Europe’s competitiveness in new green technology sectors against China.
The total size of public tenders in EU member states is approaching 2 trillion euros. This resource, which corresponds to approximately 14 percent of GDP, is intended to be used to support the domestic industry with the new regulation.
PRODUCTION CRITERIA IN STRATEGIC SECTORS
Within the scope of the bill, European production criteria are also introduced in strategic sectors such as batteries, solar and wind energy technologies, hydrogen production and nuclear energy. In this context, basic components in solar panels will need to be produced in Europe within three years.
For electric vehicles purchased through public tenders, 6 months after the law comes into force, the vehicles will be required to be assembled within the EU and 70 percent of their components, excluding batteries, will be produced in Europe.
While 25 percent of the products used in public procurement for aluminum must be produced in Europe and be low-carbon, 25 percent of the products used in steel will be required to be low-carbon.
The bill also introduces strict rules for foreign investments above 100 million euros in strategic sectors where a third country controls more than 40 percent of global production capacity.
Türkiye IS INCLUDED IN THE SCOPE OF “MADE IN EU”
Türkiye is also included in the “Made in EU” approach, which covers the European Economic Area, which includes 27 EU member countries and Norway, Iceland and Liechtenstein. With the Customs Union, Türkiye is strategically positioned within the EU’s new industrial policy and value chain.
The bill prepared the legal basis to ensure that the EU origin requirement will in principle include Türkiye within the scope of the Customs Union. This approach revealed that the EU sees Türkiye as an important element of the strategic production ecosystem.
The fact that the “Made in EU” approach does not exclude Türkiye from the supply chain drew attention to Türkiye’s critical role for the European industry, especially in sectors such as automotive, machinery, textile and white goods.
Thanks to its geographical proximity, developed production infrastructure and Customs Union, Türkiye stands out as an important production center in the European industrial strategy. Its strong industrial infrastructure, large production capacity, qualified workforce and proximity to the European market make Türkiye an important production and supply center for the EU.
THE DRAFT IS EXPECTED TO BE AMENDED IN THE NEGOTIATIONS TO BE HELD IN EP
While some countries within the EU give strong support to the initiative, some countries express their reservations.
France stands out as one of the pioneers of this approach to protecting European industry and wants the scope to be kept narrow.
Some countries, including Germany, argue that domestic production conditions may deter investments, increase prices in public tenders and weaken the EU’s global competitiveness.
Germany also argues that the concept of “Made in Europe” or “Made in EU” is too narrow an approach and that the “Made with Europe” approach should be adopted, in which trade partners are also included in the process.
The controversial proposal is expected to undergo changes during the negotiations in the EU Council and the European Parliament (EP).
