Europe’s industry is under pressure. Global competition is intensifying, while companies face rising costs, regulatory complexity and investment uncertainty.

By Konstantinos Diamantouros

In this context, the Industrial Accelerator Act (IAA) is a timely initiative. The EESC welcomes its objective to strengthen Europe’s industrial base and support the transition to a low-carbon economy. For the EESC, the key priority now is clear: accelerate decarbonisation without undermining competitiveness.

The IAA supports the EU’s ambition to increase manufacturing to 20% of GDP by 2035. This is essential to preserve Europe’s industrial capacity, skills and technological leadership. 

However, achieving this goal requires more than targets. It requires a business-friendly framework that enables companies to invest, innovate and grow in Europe. The proposal rightly focuses on simplifying and accelerating permitting procedures, which is a crucial step forward. But companies also need access to energy, infrastructure and skilled workers, as well as better coordination between EU and national rules. Without these conditions, projects will still face delays and higher costs.

A balanced “Made in EU” approach

The EESC supports the creation of a European preference for the sectors included in the scope of the proposal, i.e. aluminium, steel and concrete. On the contentious issue of the geographical scope, it understands the need for maintaining equal access to FTA partners, especially at a time when the EU is boosting its FTA network to strengthen value chains and reduce dependencies.  

At the same time, however, an open definition of the Made in EU approach must be based on clear criteria and fairness to ensure a level playing field. It should ensure effective reciprocity with third countries and avoid distorting competition within the Single Market. This should include free access to third countries' public procurement markets, mirroring of carbon costs through the effective implementation of CBAM, strict enforcement of the foreign subsidies regulation and, last but not least, ensuring that third countries not included in the IAA do not circumvent the rules via FTA partners. 

Public procurement can play a role and social conditionalities should apply, provided they are agreed at national level by social partners. However, they should not be the only driver. Private demand and market-based incentives are equally important to scale up low-carbon solutions and they should be promoted on a voluntary basis.

Last but not least, the EESC supports the creation of a Foreign Direct Investment screening mechanisms for strategic technologies, i.e. electric vehicles, critical raw materials, batteries and solar PVs.  It stresses nevertheless that a competitive industry depends also on people, and as such emphasises that the IAA should better reflect the need for skilled workers, training and quality jobs. 

The Industrial Accelerator Act is a step in the right direction, but to deliver results,it must remain pragmatic, balanced and business-oriented. Only then can Europe secure its industrial future and lead the green transition.

Konstantinos Diamantouros is a member of the EESC Employers' Group and Rapporteur for the Opinion INT/1119 Industrial Accelerator Act.