It is unlikely that the proposal from (the French) EU Commissioner Stéphane Séjourne will pass through the Brussels political machinery unscathed. It is already known that several EU countries believe the EU should impose fewer rules on economic activity, not more.
Supporters argue that EU countries should primarily consider the EU's international position on the world stage, amidst great powers such as China and the United States. If EU countries continue to prioritize their own national interests above all, the European economy will never become a large and powerful whole, they warn.
Stimulating
The proposal, the Industrial Accelerator Act, was finalized after weeks of negotiations and amendments within the Commission. The new rules are particularly important for the energy transition and the economy. It concerns, among other things, the production of wind turbines, solar panels, batteries, and electric cars.
Promotion
An important element is that in 'green public procurements,' preference can more often be given to products made within the European Union. With this, the EU wants to give its own industry more opportunities. The possibility of placing orders with friendly (European) non-EU countries such as the United Kingdom, Norway, or Switzerland remains possible.
Resistance
Requirements are also imposed on the extent to which products are produced in Europe. For example, some technologies must largely consist of components made within the EU. For instance, (parts for) electric cars should be at least three-quarters produced within the EU.
The proposal was only developed after intensive negotiations. Within the European Commission, the text was modified several times last year and changed up until the last moment before a final version could be adopted.
The plans also provoke resistance. Some countries and companies fear that additional rules will make it more difficult for businesses to compete internationally. A group of EU countries, led by Germany, advocate for less regulation and more open trade. According to them, the European industry must primarily remain competitive in the global market.
International
The debate takes place against the backdrop of growing international competition. China's strong position is often mentioned in Europe as a reason to strengthen domestic production. The changing American import tariffs are also an increasing obstacle for European products.
The Commission's proposal is not yet final. The plans must now be discussed by the EU countries and the European Parliament, where further changes are possible before the law can be implemented.