EU Approves Landmark ‘Made in Europe’ Act to Boost Local Industry

Brussels, March 4, 2026 – The European Commission has formally adopted the Industrial Accelerator Act (IAA), a landmark measure designed to bolster local producers of strategic technologies and reduce reliance on foreign suppliers. The act, often referred to as the ‘Made in Europe’ act, follows weeks of intense negotiations and aims to revitalize European industrial decarbonization and traditional manufacturing.

Key Provisions of the Industrial Accelerator Act

The IAA establishes a preference for “Made in EU” products in green public procurement processes. This means that when governments across the European Union procure goods and services related to green technologies, they will prioritize European suppliers. However, a final decision on whether to include “friendly third countries” within the scope of this preference has been delayed for six months, meaning nations like the U.K. And Switzerland will need to continue lobbying for inclusion [Politico].

Beyond procurement, the act introduces restrictions on inward investment, particularly targeting dominant players in key strategic green industries. These industries include:

• Batteries and energy storage
• Electric vehicles and components
• Solar photovoltaic technology
• The extraction, processing, and recycling of critical raw materials

These restrictions are largely aimed at addressing concerns surrounding China’s growing influence in these sectors [Politico].

Negotiations and Internal Debate

The path to adoption was not without its challenges. The proposal, overseen by Industry Commissioner Stéphane Séjourné, faced significant internal opposition within the European Commission. Initially, as many as nine departments raised concerns, but this number was reduced to three, including the Commission’s trade department, before Wednesday’s final vote [Politico]. Commission officials reported that 44 changes were made to the draft during a final meeting that extended into overtime [EENews].

Impact and Future Outlook

The ‘Made in Europe’ act represents a significant shift in the EU’s industrial policy, signaling a commitment to greater strategic autonomy and resilience. Although the act is expected to stimulate investment and job creation within the EU, its impact on global trade and investment patterns remains to be seen. The six-month delay in deciding on the inclusion of third countries will be a key area to watch, as will the implementation of the investment restrictions and their effect on competition within the targeted industries.