According to the draft reviewed by Reuters, the Industrial Acceleration Act (IAA), which has been the subject of intense debate, will require low-carbon manufacturing and “made in Europe” in public tenders or subsidy processes for aluminum, cement and steel production, wind turbines and electric vehicles.
The plan aims to increase the share of the manufacturing industry in the EU’s total economic output from 14 percent to 20 percent by 2035.
DIFFERENCES OF OPINION AND PROTECTIONIST CONCERNS
Critics of the bill say this move will cause retaliation from trading partners. On the other hand, supporters; He notes that rivals such as the US, China, Brazil and India already impose domestic production requirements, and that similar rules will help close the EU’s huge investment gap.
On the other hand, the most important question for trading partners is how broad the EU will keep the definition of “made in Europe”. While France wants this definition to be limited to the 27 EU member states and single market members (Norway, Iceland, Liechtenstein), some countries advocate including the UK.
After the Commission announces the plan, the European Parliament and member states will begin negotiations on the final text.
