The European Commission has introduced the proposed Industrial Accelerator Act (IAA), a policy package designed to expand manufacturing capacity in the European Union and reduce reliance on external suppliers, particularly in strategic industries including automotive, steel and clean technologies.
Stéphane Séjourné presented the initiative as part of a broader industrial strategy aimed at boosting domestic production, creating jobs and supporting the development of low-carbon technologies across the EU.
If adopted, the legislation would introduce new conditions for major foreign investments and public procurement. Governments providing subsidies or purchasing goods may be required to meet CO₂ and “Made in EU” criteria in certain sectors.
According to the Commission, the rules would apply to strategic industries including steel, cement, aluminium, automobiles and net-zero technologies, with a framework that could later be expanded to additional energy-intensive sectors such as chemicals.
The Commission said the objective is to increase manufacturing’s contribution to EU gross domestic product to 20% by 2035, up from about 14.3% in 2024. Officials say the measure is intended to improve economic resilience and reduce dependencies on non-EU suppliers while encouraging investment in European production capacity.
The proposal also includes plans for a single digital permitting process intended to accelerate approvals for new manufacturing projects across EU member states, though the Commission did not provide further operational details.
Under the plan, foreign investments exceeding €100 million in strategic sectors would be subject to additional criteria if a single non-EU country controls more than 40% of global manufacturing capacity in that sector. In such cases, investments would need to demonstrate local economic benefits including job creation, technology transfer and compliance with local content requirements.
The Commission said projects would also need to ensure that at least 50% of employment generated by the investment takes place within the EU.
The legislation could affect several sectors, including the automotive industry, although specific measures remain limited at this stage. A related Commission document indicated that the act may introduce “Made in EU” provisions for electric vehicles and their components.
Earlier draft versions of the policy suggested that, during an initial transition period, electric vehicle battery systems could still use cells imported from Asia as long as battery packs are assembled within the EU. Later stages of the policy could require battery cells and key materials to originate from European production.
The proposal has drawn mixed reactions within the automotive sector. Some industry leaders have called for stronger incentives to support locally produced electric vehicles, while others have raised concerns that stricter localisation requirements could increase trade tensions.
Séjourné said the policy is intended to strengthen Europe’s industrial competitiveness amid growing global competition.
“Today marks a major step in the renewal of the European economic doctrine so the Union is fit for the 21st century,” he said. “Facing unprecedented global uncertainty and unfair competition, European industry can count on the provisions of this Act to boost demand and guarantee resilient supply chains in strategic sectors.”
