EU Eyes “Made in Europe” in Public Procurement to Boost Industry
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EU Eyes "Made in Europe" in Public Procurement to Boost Industry
- The European Union is increasingly leveraging public procurement, which accounts for about 14% of its GDP, as a tool to strengthen its industrial policy and promote "Made in Europe" products.
- A key legislative proposal, the Industrial Accelerator Act (IAA), unveiled by EU Industry Commissioner Stéphane Séjourné on March 4, 2026, aims to channel public funds towards European-manufactured, low-carbon products in strategic sectors.
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The European Union is actively pursuing a “Made in Europe” strategy within its public procurement policies, aiming to bolster domestic industry, enhance competitiveness, and reduce strategic dependencies. Public procurement represents a significant economic lever, accounting for approximately 14% of the EU’s Gross Domestic Product (GDP).
On March 4, 2026, EU Industry Commissioner Stéphane Séjourné introduced the Industrial Accelerator Act (IAA), a legislative proposal designed to direct public funds and contracts towards European-manufactured, low-carbon products. This initiative targets key strategic sectors such as steel, cement, aluminum, clean technologies, and electric vehicles. The IAA sets ambitious goals, including increasing manufacturing’s share of EU GDP to 20% by 2035, up from 14.3% in 2024.
The push for “Made in Europe” in public procurement is part of a broader effort to modernize existing EU rules and support economic priorities, as outlined in the Clean Industrial Deal. This revised framework intends to incorporate sustainability, resilience, and “Made in Europe” criteria into public tenders. For example, the IAA proposes minimum “Made in EU” requirements for public procurement, such as 70% for electric vehicles and 25% for aluminum and cement.
However, the implementation of such policies presents challenges. Concerns have been raised about potential cost increases due to reduced competition, as seen in “Buy American” policies where localization requirements led to price premiums. The EU also faces the complexity of ensuring that “Made in Europe” effectively strengthens the entire supply chain, given its reliance on foreign raw materials and processing capacity, particularly from China. Discussions have also touched upon whether the “Made in Europe” label should extend to “trusted partners” outside the EU, with some member states like Germany warning against overly restrictive rules that could deter foreign investment. The European Commission is expected to present a draft revision of the Public Procurement Act