Burnham warns EU "Made in Europe" plan could hurt British industry

UK Prime Minister Andy Burnham held talks with European Commission President Ursula von der Leyen on the sidelines of the United Nations General Assembly on Tuesday, September 23, after warning that proposed EU protectionist measures could inflict “collateral damage” on British industry.

Ahead of the meeting, Burnham raised concerns over the EU’s planned “Made in Europe” scheme, which is intended to shield clean-technology companies and electric-vehicle manufacturers from low-cost Chinese competition. He warned that the measures could also affect British companies closely integrated into European supply chains, according to dpa.

The proposals would direct public contracts and subsidies towards manufacturers based within the EU. Formally known as the Industrial Accelerator Act, the scheme could have repercussions for businesses whose operations and supply chains extend across the continent.

Downing Street said Burnham and von der Leyen “emphasised the importance of working together” on a range of issues, including how to respond to “unfair competition and overcapacity in global markets”.

The two leaders also discussed preparations for the next UK-EU summit. A planned summit was shelved after Burnham replaced Keir Starmer as prime minister but is expected to be rescheduled later this year.

A Downing Street spokesperson said: “The two leaders discussed the importance of working towards a successful outcome for the next EU-UK summit later in the year.

“They also reflected on the challenges the EU and UK face in responding to the threats from Russia in Ukraine and in relation to hybrid warfare and disinformation.

“They emphasized the importance of working together to meet the common security threats faced by Europe, to reduce illegal migration and to respond to unfair competition and overcapacity in global markets.

“Finally, the leaders also discussed the initiatives under way to address AI safety, including in relation to the UK’s presidency of the G20 in 2027.”

Von der Leyen said she was looking forward to the planned summit, adding that “with the right mix of ambition and focus, we can deliver a stronger partnership”.

Before the talks, Burnham said London had concerns that the “Made in Europe” initiative could affect British industry and supply chains.

“We do have concerns about Made in Europe, which is something that could affect British industry and British supply chains,” he said.

Burnham said there was “considerable support” for the UK’s position among EU member states because “Europe’s argument is not with us”.

“We both suffer the same effects as other countries, particularly steel and the issue it raises for the steel industry in Europe and in Britain.

“We are making the argument ‘we are not your enemies here… we are not the problem’. Made in Europe is dealing with a different problem.

“We are making the argument that ‘let’s avoid collateral damage’.”

By Tamilla Hasanova