EU postpones controversial “Made in Europe” plan again

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Lerato Khumalo

The European Union (EU) postponed the announcement of the controversial “Made in Europe” plan, which will give priority to European companies in public procurement, by a week.

According to the news on the Euronews website, the EU Commission has not yet completed the work on the Industrial Accelerator Law proposal, which is at the center of the Union industrial strategy.

There are disagreements about the content of the law, which is expected to introduce the “Made in Europe” requirement for member countries’ use of public resources and public tenders and aims to support European industry.

For this reason, the announcement date of the bill, which had been postponed several times before and was last expected to be February 26, was postponed to March 4.

The plan in question is prepared by the team of EU Commission Vice President Stephane Sejourne.

The bill aims to provide advantages to products produced in Europe in public procurement and publicly supported programs in areas such as energy-intensive sectors, net-zero technologies and automotive.

In the drafts leaked to the press, the phrase “Made in Europe” covers the 27 EU member countries and the European Economic Area countries, including Norway, Iceland and Liechtenstein.

In addition, the EU Commission wants reliable partners whose production can be considered equivalent to Union origin to be identified and included in the scope.

However, various units of the Commission and EU member states have different views on this issue.

While France is the pioneer of this initiative within the EU, some EU countries, including Germany, hold the view that local product purchasing conditions may deter investment, increase prices in public tenders and harm the EU’s global competitiveness.

Germany, which has a cautious attitude towards protectionist policies, argues that the concept of “Made in Europe” is a very narrow definition and that an inclusive “Made with Europe” approach should be adopted, including trade partners in the process.

Turkey states that Turkish manufacturers should also be included in the “Made in Europe” concept, taking into account factors such as the Customs Union, the current level of economic integration, and legislative harmonization.

Some sectors in Europe, especially the automotive sector, want the UK and Türkiye to take part in the Made in Europe approach.

It is envisaged that the proposal, which has been the scene of discussions, will be amended during the negotiations in the European Parliament (EP) with the EU countries during the legislative process after its publication by the Commission.