TL:DR – EU Leaders to Discuss ‘European Preference’ Proposal on 25 February
• On 9 February, Ursula von der Leyen stated that a European preference is essential for creating domestic value in industry.
• The European Commission plans to unveil the Industrial Accelerator Act on 25 February to prioritise EU-made products.
• Analysts warn that “Made in Europe” rules may increase costs for industries like construction and automotive.
• Automotive industry representatives express concern that protectionist measures could disrupt international supply chains.
• Eurofer advocates for broader “Made in Europe” criteria, ensuring steel is sourced and produced within the EU.
‘European preference is a risk to healthy supply chains,’ EU industries tell Euronews
Increasing pressure on manufacturers to move production to Europe is set to disrupt existing supply routes and prompt companies to establish new ones, according to various industry representatives speaking to Euronews. This comes ahead of upcoming talks among EU leaders regarding the “European preference”, a proposal aimed at revitalising the bloc’s industry, introduced by French Commissioner Stéphane Séjourné.
The “European preference” initiative seeks to prioritise EU-made products and services in public procurement and establish criteria favouring domestic production within EU supply chains. This strategy is part of the broader Industrial Accelerator Act, scheduled for presentation on 25 February, and aims to enhance EU competitiveness and curtail dependence on foreign imports, particularly from the United States and China.
EU Commission President Highlights Necessity of European Preference
In a letter to EU leaders dated 9 February, European Commission President Ursula von der Leyen asserted that the European preference is a “necessary instrument” for creating domestic value. “It can help create lead markets in strategic sectors and support the scaling-up of European production capabilities,” she wrote. However, von der Leyen cautioned that any such preference “must be underpinned by robust economic analysis and aligned with our industrial priorities, while engaging constructively with trusted partners”.
Industry representatives have expressed concerns regarding potential impacts on existing supply chains. The German Association of the Automotive Industry (VDA) emphasised that protectionism could harm the export-oriented automotive sector, which relies on open markets.
Concerns from Various Industries Over New Regulations
ASD Europe, representing the aeronautics sector, echoed these concerns, stating that many industries are still uncertain about the implications of the “Made in Europe” criteria. Secretary General Camille Grand stressed the need for specifics and noted that the global nature of supply chains poses unique challenges.
Meanwhile, the clean technology sector has welcomed the Commission’s plan but warned against isolating the EU from critical economic partners. Victor van Hoorn from Cleantech for Europe emphasised the importance of ensuring that EU-made products can compete effectively while also building resilience in key supply chains.
Support for Increased Domestic Production in Steel and Chemicals
The European steel industry, represented by Eurofer, expressed support for increased domestic production but called for regulations addressing the entire value chain. Eurofer’s spokesperson highlighted that steel used in components should also be processed within the EU.
The European Chemical Industry Council pointed out that “Made in Europe” criteria must incentivise production throughout value chains. They suggested potential flexibility for certain production steps outside the EU and indicated that including external partners could enhance procurement attractiveness.
Laurent Donceel from Hydrogen Europe welcomed the Commission’s plans to strengthen domestic production for hydrogen technologies, calling it a “meaningful step forward” toward solidifying industrial value chains in Europe. Donceel urged for political support to ensure all hydrogen products are considered in future laws to effectively utilise public procurement in building clean hydrogen demand.
“