The European Commission is urging business leaders to support and sign a French-led initiative aimed at increasing the share of industrial production based in Europe, as the EU prepares to unveil its Industrial Accelerator Act (IAA).
According to a letter seen by Euronews, the Commission is calling on representatives from energy-intensive sectors such as steel and aluminium to back a stronger “Made in Europe” component in forthcoming legislation. The move is intended to revive Europe’s struggling industrial base amid mounting competition from China and the United States.
The appeal comes days before the planned presentation of the Industrial Accelerator Act, which seeks to accelerate the decarbonisation of heavy industry while preserving the competitiveness of European production. The initiative builds on earlier EU legislation adopted in 2024 that prioritised domestic clean-technology manufacturing as part of the bloc’s goal to achieve climate neutrality by 2050.
In the letter, European Commission Executive Vice-President Stéphane Séjourné warned that Europe faces a stark choice as global trade becomes increasingly shaped by tariffs, subsidies and export restrictions. Without an ambitious and pragmatic industrial policy, he argued, the EU risks a gradual erosion of its industrial capacity, technological know-how and economic sovereignty.
Supporters say the IAA could significantly strengthen European competitiveness at a time when traditional sectors such as cement and steel, as well as emerging net-zero technologies, are grappling with weak demand and aggressive international competition. However, critics caution that the proposal could undermine competition within the EU’s single market, particularly disadvantaging member states with less developed industrial frameworks compared with countries like France and Germany.
Several member states, including Czechia, Estonia, Finland, Ireland, Latvia, Malta, Portugal, Sweden and Slovakia, warned in December that the planned law could distort competition and affect prices, quality and business conditions across the bloc.
Key elements of the proposal, including quotas for European-made products, financing mechanisms and state-aid rules, remain under discussion. EU officials have floated potential targets requiring 60% to 80% of certain products to be produced in Europe, with provisions to count output from non-European firms operating within the EU as “Made in Europe”.
The Commission is also exploring ways to align supply and demand by creating so-called “lead markets” for low-carbon industrial products such as green steel and hydrogen, supported by demand-side measures. In parallel, state-aid rules may be loosened, potentially allowing member states to fund decarbonisation projects without prior notification to the Commission.
European industry leaders have reacted positively, citing a record €350 billion trade deficit with China in 2025. In a separate letter, business representatives described the IAA as an act of economic independence, echoing warnings from former European Central Bank president Mario Draghi that Europe risks long-term decline if it fails to close the gap with global competitors.
The Industrial Accelerator Act, initially delayed in December, is currently scheduled for presentation on 29 January, although further postponements remain possible.
