EC: Heavy industry to produce 'Made in Europe'/ The goal is to revive the industry in the face of competition
The European Commission is asking for support from heavy industry representatives, in sectors such as steel or aluminium, to expand 'Made in Europe' production. The aim is to revive an industry struggling in the face of competition from China and the United States. The call comes on the eve of the EU executive's announcement of the Industrial Accelerator Act, which aims to boost the decarbonisation of energy-intensive industries while keeping European manufacturing competitive.
Analysts say the Act could significantly strengthen the EU's industrial competitiveness, as both historically energy-intensive sectors, such as cement and steel production, and innovative technologies are facing low demand and damaging international competition.
However, critics argue that the upcoming law could have the negative effect of undermining competitiveness within the EU's single market. A group of nine countries — including the Czech Republic, Estonia, Finland, Portugal and Sweden — warned that the law could have "consequences for effective competition and price levels and quality."
Political discussions on criteria, incentives and permits for domestic products are still ongoing, EU diplomats said. The same goes for funding, as the EU executive is exploring ways to link EU funding to the latest initiative. The bloc's multi-year budget and the EU Competitiveness Fund are set to help European industries.
European industry leaders appear receptive to the Commission's call to intensify domestic production, citing the "record trade deficit of 350 billion euros" with China in 2025.
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