EU introduces 'Made in Europe' rules to combat industrial decline

The European Union has introduced new "Made in Europe" regulations aimed at supporting its manufacturers against global competition, including from China. While the EU's industry chief has praised the move as a significant economic shift, it may provoke criticism from Beijing for being seen as protectionist.

“What I am presenting you today is more than just a change in procedures, it is a change in doctrine,” European Commission vice president for industrial strategy, Stephane Sejourne, told a press conference in Brussels, News.Az reports, citing foreign media.

The new regulations – officially known as the Industrial Decarbonisation Accelerator Act (IAA) – aim to ensure that public and foreign investments support manufacturing inside the 27-nation bloc, explained an EU official.

To that end, they stipulate that companies that want public money must meet minimum thresholds for EU-made parts. Large investments from dominant foreign firms will also be subject to conditions that include employing EU workers.

The act, originally planned for December 2025, designates up to €500 billion in subsidies over the next decade for electric vehicles, solar panels, batteries and quantum technologies.

Local-content rules require at least 55 percent components that are manufactured within the EU, so as to strengthen European manufacturing and decrease dependence on products imported from non-EU supply chains.

The text does not name China in this regard, although its measures address Beijing’s current clean tech export dominance.

Its proponents point out that rival manufacturers such as the United States, China, Brazil ​and India already have rules on local content in place, and that similar requirements could help fill the EU's massive investment gap.

However, the “Made in Europe” measures, strongly backed by France, were pushed back several times due to disagreements, with some arguing they run counter to the EU's pro-free trade spirit.

Much of the discord also revolved around the geographical scope implied by "Made in Europe". Sceptics – including Germany, the EU's largest economy – argued trade partners should be included in the definition under a "Made with Europe" approach.

News.Az 

By Ulviyya Salmanli