The European Commission has unveiled the draft Industrial Accelerator Act, which links EU government spending to European production in key clean technology sectors, in particular electric vehicles, requiring compliance with minimum criteria for "made in Europe" and low carbon emissions when governments subsidize production or purchase products through government procurement, according to Reuters. The aim is to use the EU's public purchasing power of more than 2 trillion euros to strengthen domestic industry, offset higher EU regulatory and energy costs, and prevent new green technology value chains from shifting to China, which dominates many segments (in particular, the solar energy segment).
As for cars, the proposal would require that electric vehicles purchased with public procurement funds be assembled in the EU and — six months after the law comes into force — contain 70% of EU-made components (excluding batteries). The term "Europe" will automatically cover the EU, as well as Iceland, Liechtenstein and Norway, with a possible extension to certain third countries (for example, countries that have signed the WTO agreement on public procurement, or countries with trade agreements with the EU), subject to reciprocity verification, which may make access difficult for countries with rules of local preference, such as Canada. Limited exceptions are provided if supplies are uniquely limited worldwide or if switching to European content increases costs beyond established thresholds.
The project also adds conditions for large foreign investments (>100 million euros) in strategic sectors where the investor's country controls at least 40% of global capacity, including restrictions on majority ownership, labor requirements, and intellectual property licensing. The text is now being submitted to EU states and the European Parliament, where significant changes are expected amid controversy, with automakers lobbying against the inclusion, warning that their global supply chains could be disrupted.
