EU to unveil 'Made in Europe' rules amid member-state pushback

The European Commission will propose 'Made in Europe' rules linking public funding and investment approvals to minimum EU-made component thresholds in strategic sectors, and the draft also includes screening and conditions for large foreign investments.

The European Commission will unveil new "Made in Europe" rules aiming to boost domestic production and support strategic sectors. The measures were delayed several times amid disagreements over scope inside the commission and divisions among member states. The proposal ties access to public money and market openings to minimum thresholds for EU-made parts and sets conditions for large foreign investments. EU industry chief Stephane Sejourne is scheduled to present the plan, which will require approval by member states and the European Parliament. Key points: - Companies seeking public funding would need to meet minimum thresholds for EU-made components in strategic sectors such as cars, green technology and energy-intensive industries like aluminium and steel. - A draft example in the document says electric-vehicle manufacturers would need at least 70 percent of a car's components made in the EU to access public money, though the draft could change. - The package, called the "Industrial Accelerator Act" in the draft, aims to ensure foreign firms partner with European companies when setting up in the bloc and to restrict market access in some cases. - It imposes conditions on foreign investments above 100 million euros in emerging strategic sectors such as batteries and electric vehicles, triggered when the investor's country holds more than 40 percent of related global manufacturing capacity. - For such projects the draft includes requirements reported as employing at least 50 percent EU workers, limiting an investor's stake to no more than 49 percent of the related EU company, and transferring technological know-how; the proposal has support from France and scepticism from Germany and has raised concerns from countries outside the EU. Summary: The measures are intended to strengthen the EU's industrial base by tying public support and investment approvals to EU content and partnership terms. Backers say the approach will help preserve strategic sectors, while critics prefer looser "Made with Europe" arrangements and some trading partners have expressed worries. The proposal will be formally presented by the commission and must be approved by EU member states and the European Parliament.