‘Made in EU’ proposals put forward to boost manufacturing

Made in EU Proposals Aim to Strengthen Manufacturing

The European Union has introduced new measures to bolster its manufacturing industries by establishing guidelines for public procurement. These initiatives seek to reduce dependency on affordable Chinese products while advancing sustainability goals. On Wednesday, the European Commission unveiled the ‘Made in EU’ strategy, which outlines mandatory criteria for government purchasing to favor European production in critical areas. This plan is integrated into the Industrial Accelerator Act (IAA), a legislative framework that also emphasizes the adoption of low-carbon procurement standards.

The IAA is still under review by EU nations and the European Parliament before it can be enacted. Member states have shown differing levels of support for the ‘Made in EU’ initiative, with China often being the third country referenced in discussions. The goal of the act is to increase the share of European manufacturing from 14% to 20% by 2035. It also targets preserving jobs, as EU data indicates 200,000 industrial positions have been lost over the past 15 months.

The proposals aim to prevent the potential disappearance of around 600,000 jobs in the automotive industry and generate approximately 150,000 new roles in other sectors. A key focus is on reducing reliance on low-cost Chinese imports while accelerating the use of environmentally friendly technologies. China accounted for 98% of solar panels imported into the EU in 2023 and 29% of wind turbines, highlighting its dominant role in the market.

“The goal is to enhance demand and secure robust supply chains in essential sectors,” stated European Commission Vice President Stephane Sejourne. “This will create employment by channeling public funds toward European production, reducing dependencies and improving economic stability and independence,” he further explained. “Without action, it’s evident that clean energy technology could be entirely produced in China… Cement and steel industries may face full offshoring within the next few years,” Sejourne warned.

As with many EU policy proposals, consensus remains a challenge, with member states adopting divergent approaches. The plan underscores the bloc’s commitment to resilience in the face of global disruptions and competitive pressures from foreign markets.