'Made in EU' proposals put forward to boost manufacturing

"The IAA covers several key sectors, including steel, cement, aluminum, cars and innovative technologies, such as batteries, solar, wind and nuclear. The new rules would set a minimum requirement for projects using public funds. For example, aluminum sector projects would require 25% of the aluminum to be produced in the EU and with low-carbon technologies. For cement, the equivalent rate would be 5%."

"Investors would need to make sure at least 50% of their staff are EU workers with foreign ownership limited to 49%. It also limits foreign direct investment in strategic sectors to 100 million ($116 million) where a third country controls over 40% of global manufacturing capacity."

"The aim of the IAA is to grow the European manufacturing sector from 14% to 20% by 2035. It also aims to save jobs in those sectors, with 200,000 industrial jobs lost in the past 15 months, according to EU figures. The act aims to stem the potential loss of some 600,000."

The European Commission introduced the Industrial Accelerator Act (IAA), which establishes minimum requirements for public procurement to incentivize European manufacturing across key sectors including steel, cement, aluminum, cars, batteries, solar, wind, and nuclear technologies. The proposals set specific production quotas—such as 25% for aluminum and 5% for cement—requiring EU-sourced materials in publicly funded projects. The rules include workforce requirements mandating at least 50% EU workers and limiting foreign ownership to 49%. Foreign direct investment in strategic sectors is capped at $116 million when third countries control over 40% of global capacity. The IAA aims to increase European manufacturing from 14% to 20% by 2035 and prevent the loss of approximately 600,000 industrial jobs. The proposal requires approval from member states and the European Parliament before implementation.

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