European Economic
and Social Committee
Industrial Accelerator Act: EESC backs ‘Made in Europe’ but calls for stricter safeguards and more focus on workers
The European Economic and Social Committee (EESC) has welcomed the European Commission’s proposed Industrial Accelerator Act (IAA) as a timely move to strengthen Europe’s industrial competitiveness, at a time when manufacturing’s share of EU GDP has fallen from 17.4% in 2000 to just 14.3% today.
In an opinion on the IAA adopted at its July plenary session, the EESC said it supported the Commission’s ambition to increase manufacturing’s share of EU GDP to 20% by 2035, but stressed that the legislation must do more to protect European industry, ensure fair competition and create quality jobs.
‘Achieving this ambition will require more than just setting targets. We must create the conditions that allow companies to invest, innovate and grow in Europe,’ said Antje Gerstein, president of the EESC’s Section for the Single Market, Production and Consumption, which drafted the opinion.
She added that the focus on simplifying and accelerating permitting procedures was a crucial step forward, but highlighted that speeding up permits would make little difference if other obstacles remained: ‘Companies also need reliable energy supplies, modern infrastructure and skilled workers, as well as better coordination between EU and national rules. Without these conditions, delays and higher costs will remain a reality.’
Furthermore, acceleration areas should not deepen regional inequalities. Member States should take regional disparities into account when designating such areas, so that faster industrial development does not only benefit regions that already have strong industrial ecosystems.
While supporting the Industrial Accelerator Act’s ‘Made in Europe’ approach, the EESC warned against automatically extending the same treatment to non-EU countries that have free trade or government procurement agreements with the EU.
Any non-EU country benefiting from ‘Made in Europe’ rules should first demonstrate genuine reciprocity, compliance with EU standards and respect for European value chains. Without reciprocal market access or equivalent environmental, social and regulatory standards, the EESC said, European companies could be exposed to unfair competition.
The EESC also believes that decisions on adding or removing countries from the list of eligible partners should be taken by the European Parliament and the Council through the ordinary legislative procedure, rather than by the European Commission through delegated acts. This would ensure greater democratic oversight while still allowing the EU to respond quickly to geopolitical developments.
The EESC supports the inclusion of steel in the sectors earmarked for European preference, on top of aluminium and concrete. If the new approach proves successful in stimulating green industrial production and demand, the EESC would support extending it further in future. Any extension of European preference must be based on a thorough impact assessment, as there can be no one-size-fits-all approach.
The EESC stresses that public procurement cannot be the sole driver of demand. It can certainly play a role, and social conditions should apply, provided they are agreed at national level by social partners. But private demand and market-based incentives are equally important in scaling up low-carbon solutions.
The Committee also supports safeguards for foreign direct investment exceeding EUR 100 million in strategic sectors such as batteries, electric vehicles, photovoltaics and critical raw materials, provided that such conditions strengthen EU value creation, technology transfer and local manufacturing without creating unnecessary administrative burdens for companies.