EU to Prioritize ‘Made in Europe’ in Public Procurement to Boost Industry and Counter China
The European Commission is proposing new rules to prioritize European-made products in public tenders, aiming to strengthen the EU’s industrial base, accelerate the green transition, and counter competitive pressures from China. The initiative, formalized in the Industrial Accelerator Act, marks a significant shift towards a more protectionist industrial policy.
Strategic Sectors Targeted
The “Made in Europe” requirements will initially focus on strategic sectors deemed crucial for the EU’s economic security and green ambitions. These include the automotive industry, green technologies, and heavy industry. The Commission argues these sectors face significant challenges and require support to remain competitive within the EU.
Addressing Unfair Competition from China
A key driver behind the new policy is the perceived unfair trade practices employed by China, which has led to an influx of cheaper products, particularly in green sectors like solar panels. European Commissioner for Climate Action, Wopke Hoekstra, stated the EU “must stand up harder for our own interests” in response to what he described as “unfair trade practices” Columbia Business School.
Specific Product Requirements
Under the proposed rules, electric cars purchased with public funds will need to be assembled in Europe, with an increasing requirement for components to also originate from within the EU. Similarly, public tenders for solar panels, wind turbines, cement, and aluminum will favor products that are wholly or partially manufactured in the EU. While steel is excluded from the “Made in Europe” obligation, any steel used must be produced using green methods.
Internal Divisions and Compromises
The introduction of the Industrial Accelerator Act faced internal opposition within the EU. France strongly advocated for the “Made in Europe” obligations to bolster its manufacturing industry, while Germany, along with other member states, expressed concerns about potential cost increases and retaliation from trading partners. These concerns stemmed from fears that prioritizing European products could make them less competitive and potentially violate international trade agreements.
Addressing Concerns and Safeguards
To address these concerns, the Commission has included safeguards in the proposal. The “Made in Europe” requirements will be waived if products develop into excessively expensive. Countries with existing trade agreements with the EU for the designated products may be allowed to participate in public tenders. D66 MEP Brigitte van den Berg acknowledged the proposal includes “measures that we could not imagine a few years ago,” but emphasized they are “desperately needed.”
Next Steps and Negotiations
The proposal now faces scrutiny from the European Parliament and EU member states, promising potentially difficult negotiations. Given the high stakes, significant revisions and compromises are anticipated before the Act is finalized.
Wopke Hoekstra’s Role and EU Climate Goals
Wopke Hoekstra, the European Commissioner for Climate, Net Zero and Clean Growth, has been central to the development of these policies. Appointed in December 2024, Hoekstra previously served as Deputy Prime Minister and Minister of Foreign Affairs in the Netherlands European Commission. He has emphasized the importance of the EU remaining a leader in climate action, recognizing that European emissions represent only 7% of the global total, necessitating broader international cooperation UNU-MERIT.