EU unveils ‘Made in Europe’ rules to boost strategic industries

The European Union on Wednesday unveiled new “Made in Europe” rules aimed at strengthening key industries amid growing competition from China.

The proposal, known as the Industrial Accelerator Act, targets strategic sectors such as automobiles, steel and green technologies. It aims to ensure that public funding and major investments support manufacturing within the bloc.

EU industry chief Stephane Sejourne said the plan marks a significant shift in policy.

The European Commission hopes the measures will raise manufacturing’s share of EU GDP to 20% by 2035, up from about 14% in 2024, warning that around 600,000 jobs could be lost over the next decade if industrial decline continues.

The rules would require companies seeking public funding to use a minimum share of EU-made components. Electric vehicle makers, for example, would need at least 70% of parts produced within the bloc.

The proposal also introduces stricter screening of foreign investments exceeding €100 million in sectors such as batteries and EVs, particularly when investors come from countries dominating global production.

Originally expected last year, the plan faced delays amid disagreements among EU members over how broadly “Made in Europe” should be defined. The proposal now moves to EU states and the European Parliament for approval.