Overview
- The European Commission presented the Industrial Acceleration Act to prioritize European-made products in public procurement and subsidies across defined strategic sectors such as steel, aluminum, cement, clean technologies and the automotive value chain.
- For electric vehicles to qualify for support, cars must be assembled in the EU, have 70% EU content excluding the battery, and use batteries made in Europe with at least three locally produced components by 2027, rising to five by 2030.
- Foreign-investment rules would cap non‑EU ownership in strategic projects at 49%, require EU workforce and content conditions for investments above €100 million, and allow Commission review and possible veto for deals around €1 billion, with alternatives such as committing 1% of revenues to R&D or meeting 30% Europe-made product content.
- Preferences may extend to trusted partners like Canada, Japan and the United Kingdom under reciprocity, while China is excluded from public financing and the United States is not automatically eligible, according to Commission briefings.
- The plan introduces fast-tracked permits in designated Acceleration Areas with decisions within 18 months and digitalized procedures, targets lifting manufacturing to 20% of EU GDP by 2035 with over 143,000 jobs projected, and reflects recent softening of some thresholds such as lowering the low‑carbon steel quota for subsidies to 25%.