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In early March, the European Commission presented a new industrial plan to redefine the EU’s role in global economic competition. The initiative, promoted by European Commissioner for Industry Stéphane Séjourné, introduces a strategy aimed at strengthening domestic production through the principle of “European Preference.” This approach has the goal of limiting access to EU public funding for certain external players, particularly China, and to foster the growth of industries located in member countries. This proposal comes against a backdrop of growing economic and geopolitical uncertainty, as well as increasingly intense international competition. The legislative initiative, called the Industrial Accelerator Act, is designed to stimulate demand for European industrial products, strengthen the resilience of supply chains, and reduce the Union’s dependence on external suppliers in strategic areas. In this context, the need to support and consolidate the production systems of member countries emerges forcefully, recognizing the fundamental role of the industrial sector in the economic development and security of the EU.
THE CRISIS AND THE REASONS FOR THE NEW STRATEGY
The European industrial plan also arises as a response to a critical situation that has affected several production sectors on the continent. According to European institutions, these difficulties are partly attributable to the growing competitive pressure exerted by exports from China. In recent years, Chinese industrial products have gained a significant presence in European markets, while numerous investments made by Chinese companies in the EU have been criticized for generating limited employment. In some cases, factories built on the continent operate with a relatively small number of local workers, contributing only marginally to the economic development of host communities. In light of these dynamics, European institutions have deemed it necessary to intervene to protect and strengthen the domestic production base. From this perspective, it is essential to underline the strategic importance of effectively supporting the industrial sector of the Member States of the European Union, as it represents one of the pillars of economic competitiveness, technological innovation, and employment stability on the continent.
STRATEGIC SECTORS AND EUROPEAN CONTENT REQUIREMENTS
The strategy proposed by the European Commission focuses on three production areas considered crucial for the economic and environmental future of the Union: the first concerns clean technologies, a key sector for the energy transition and emissions reduction; the second includes the automotive industry, currently undergoing a profound transformation linked to the spread of electric vehicles; the third concerns energy-intensive industries, including aluminum, steel, and cement. To strengthen domestic production, the plan introduces specific European content thresholds for certain strategic products. In the case of electric vehicles, for example, at least 70 percent of components must come from the EU, while providing for some exceptions for numerous battery elements. For other key industrial materials, such as aluminum and cement, the minimum share of European content is set at 25 percent. From this perspective, supporting the European industrial sector is not only an economic choice, but also a political priority to ensure the Union’s strategic autonomy.
DISCUSSION BETWEEN MEMBER STATES AND THE PRINCIPLE OF RECIPROCITY
The development of the new industrial strategy was accompanied by intense debate among Member States and various Commission departments. Some Northern European and Baltic countries expressed concerns about the potential negative impact of the new rules on international investment and access to foreign technology. At the same time, Germany advocated for a relatively open interpretation of the “Made in Europe” label, allowing the inclusion of goods and components from economic partners deemed reliable. In contrast, France adopted a position more focused on protecting European industry. The compromise reached by the Commission provides for the status of European origin to be extended to products from countries with which the Union has free trade agreements based on the principle of reciprocity, particularly regarding public procurement. This choice currently excludes both China and the United States, which do not have such agreements with the EU. However, even traditionally close partners such as Canada could face restrictions if they adopt strongly nationalistic public procurement policies.
INSTITUTIONAL PERSPECTIVES AND CONCLUSIONS
The Commission’s proposal represents only the first step in a broader legislative process. To enter into force, the plan must be approved by both the European Parliament and the Council of the European Union, the body representing the governments of the member states. The debate that will accompany this phase will be crucial in defining the balance between trade openness and the protection of European industrial interests. What is already evident, however, is the growing awareness of the need to strengthen the continent’s manufacturing base. In a context of increasingly intense global competition, supporting and enhancing the industrial sectors of the Member States of the European Union emerges as an indispensable condition for ensuring long-term economic growth, strategic autonomy, and social stability.