Debate on clean industry in Europe - EU ambition pits France against Germany
The European Union's long-standing ambition to become a clean industrial power will face a major test this autumn, as lawmakers and member states negotiate the final text of the historic Industrial Accelerator Act.
A fierce debate has already begun between Europe's two largest countries over how protectionist the new law should be. France wants stronger "Made in Europe" protections, while Germany, which exports heavily, fears it could provoke retaliation from trading partners.
The main industrial policy of Commission President Ursula von der Leyen's second term aims to stimulate less polluting production processes by introducing low-carbon public procurement quotas alongside controversial "Made in Europe" rules. The aim is to boost demand for technologies that are less dependent on planet-warming fossil fuels.
First introduced in March and now under consideration by the European Parliament and the EU Council, the legislation has its roots in Mario Draghi's landmark report on European competitiveness. The EU's industry chief has described the proposal as a "change in doctrine" designed to protect European manufacturers from competition against cheaper and heavily subsidized imports from China and other major industrial economies.
France sees the legislation as an opportunity to build stronger protections for the “Made in Europe” brand — something Washington has signaled it opposes, even as the U.S. pursues its own protectionist trade policies. Germany, on the other hand, worries that protectionist measures could provoke retaliation against its export-dependent economy. That concern may no longer be theoretical. According to one lawmaker, foreign allies and trading partners are already expressing concern about some of the proposal’s more protectionist elements.
A recent draft compromise circulated by the Irish EU presidency proposes replacing the broad "Made in Europe" concept with a more legally precise system based on trade agreements and market access of specific products.
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