Key facts
- Germany and Spain have proposed different approaches to the EU's "Made in Europe" initiative.
- Germany favors a broad "Made with Europe" group, including up to 80 countries with free-trade or procurement agreements with the EU.
- Spain proposed a three-tier structure, prioritizing EU-made products, followed by EEA members and "trusted" partners, and then countries with free-trade agreements.
- France advocates for directing public support toward production within Europe.
- Ireland is leading efforts to find a compromise among EU governments.
- The UK has expressed concerns about potential exclusion from the "Made in Europe" initiative.
Germany and Spain are presenting contrasting visions for the European Union's "Made in Europe" initiative, a key component of the proposed Industrial Accelerator Act designed to bolster European companies in public procurement. The initiative aims to channel EU government spending towards European producers of green technology, energy-intensive industries, and automobiles, in an effort to better compete with Chinese exporters.
Disagreements among the bloc's 27 member states, particularly between the EU's largest economies, Germany and France, center on the eligibility criteria for the "Made in Europe" club. Germany, a major exporter, supports a broad "Made with Europe" approach, aligning with the European Commission's initial proposal. This would include countries with free-trade or public procurement agreements with the EU, potentially encompassing up to 80 nations. Germany's position paper states, "Germany rejects protectionism and discrimination," and emphasizes the EU's need to remain a reliable partner to its free-trade allies.
France, however, advocates for a more restrictive policy, with Industry Minister Sébastien Martin stating that while openness to trading partners is important, "production must take place in Europe in order to qualify for public support." Spain has put forward a compromise proposal for a three-tier system. The first tier would comprise EU member states, the second would include European Economic Area members and other "trusted" partners, and the third would be for countries with free-trade or customs union agreements, with the possibility of upgrading their status.
Ireland, currently chairing the EU Council talks, is working to reconcile these differing viewpoints, with plans to present a new compromise by mid-October and hopes of reaching a deal in November. The divisions also reflect political alignments, with the German and Spanish wings of the center-right European People's Party (EPP) group in the European Parliament also split on the issue. The UK has also voiced concerns about potential exclusion from the "Made in Europe" framework.