French proposal for “Made in Europe” label faces intense headwinds by US, UK

The French-backed European Commission initiative to introduce a so-called European preference in public procurement, alongside plans for a “Made in Europe” label, is drawing intense lobbying from opposing EU member states and external partners, including the United States and the United Kingdom. This has resulted in yet another another delay of the reform’s formal presentation.

The Commission has postponed unveiling its strategy to reindustrialize the European economy for the fourth time, according to the cabinet of Industrial Strategy Commissioner Stéphane Séjourné, as reported by Euronews.

The French-backed Industrial Accelerator Act (IAA) had initially been slated for presentation in December. However, consistent resistance from several member states — and even from within the Commission itself — has delayed the proposal multiple times. After three unsuccessful attempts, it is now scheduled to be introduced on 4 March.

"We hope that this additional week of internal discussions will allow us to make the proposal even more rock-solid," Séjourné's cabinet told reporters.

Beyond internal EU divisions, Brussels is also facing objections from Washington. The US ambassador to the EU stated that the United States opposes any move to incorporate European preference clauses into the bloc’s public procurement framework.

"We fully support European rearmament and a revitalisation of the European defence industrial base. However, European preference in the EU Defence Procurement Directive would undermine member state flexibility to make national procurement purchases," US ambassador to the EU Andrew Puzder wrote last week.

According to a leaked document reviewed by Euronews, the Commission is promoting voluntary labeling schemes for “Made in the EU” low-carbon products as a way to gauge industry participation, with particular emphasis on the steel sector.

The executive is also expected to set targets for the share of European goods that must be produced domestically under the forthcoming legislation.

The draft law identifies several strategic industries for European preference measures, including chemicals, automotive manufacturing, artificial intelligence, space, and defense. It proposes EU-origin requirements of 70% for electric vehicles, 25% for aluminum, and 30% for plastics used in windows and doors.

Supporters of the French-led initiative argue that boosting the proportion of EU-made and low-carbon products consumed within the bloc will stimulate internal demand, enhance industrial competitiveness, and reduce reliance on high-carbon or imported goods.

Yet the proposal has met strong resistance. Nordic and Baltic countries caution that a rigid “Made in Europe” framework could discourage investment and restrict EU firms’ access to advanced technologies from outside the bloc.

In a separate leaked document cited by Euronews, the Commission appeared to align more closely with Germany’s stance, suggesting a European preference that would apply to like-minded partners offering reciprocal procurement access and contributing to “the Union’s competitiveness, resilience and economic security objectives”.

The UK has likewise voiced concern that the measures could tilt toward protectionism, with British officials emphasizing the deep economic integration between the EU and the UK.

The EU remains the largest export destination for British automobiles, while several European carmakers manufacture vehicles in the UK, which in 2024 ranked as the EU’s second-biggest export market after the United States.

By Nazrin Sadigova