Germany, Spain clash over EU’s "Made in Europe" industry push

Germany and Spain have put forward competing approaches to the scope of the European Union’s “Made in Europe” initiative, highlighting divisions among member states over a flagship industrial policy bill.

The European Commission unveiled the Industrial Accelerator Act in March, seeking to steer the bloc’s substantial public spending on green technology, energy-intensive industries and automobiles toward European companies and strengthen their position against Chinese exporters.

Six months later, the EU’s 27 governments have yet to reach a common position. Documents from Germany and Spain obtained by POLITICO ahead of September 24 meeting of EU industry ministers reveal differences over which countries should qualify for preferential access to European public procurement.

Germany, the bloc’s largest exporter, favors a broad “Made with Europe” framework largely reflecting the Commission’s original proposal. This would include countries that have free-trade or public procurement agreements with the EU, as well as states in a customs union with the bloc.

“Germany rejects protectionism and discrimination,” the German position paper says. “The EU must remain a reliable partner for its free-trade partners and uphold its legal obligations.”

France is advocating a more restrictive approach, with Industry Minister Sébastien Martin arguing that European public funding should support production within the bloc.

“In the future, it will still be possible to have products with some of their added value coming from elsewhere, but production must take place in Europe in order to qualify for public support,” Martin said in Brussels.

Spain has proposed a three-tier system designed to give EU-made products the strongest preference while maintaining access for trusted trading partners.

“A more granular and risk-based approach could improve both the effectiveness and the political acceptability of the text,” the paper says.

Under the proposal, EU members would form the first tier, European Economic Area members and other “trusted” partners the second, and countries with free-trade, customs union or procurement agreements with the EU the third.

Ireland, which is chairing negotiations among EU governments until the end of the year, is seeking to bridge the differences. Industry Minister Peter Burke said Dublin plans to present a new compromise by mid-October, with a deal targeted for November.

The dispute is also being closely watched in the UK, which is concerned that its companies could be excluded from the “Made in Europe” framework. EU officials have said they cannot prejudge the outcome of the legislative process.

By Vafa Guliyeva