Brussels is preparing a new industrial policy instrument, the Industrial Accelerator Act, which is already being described in the European Union as one of the most notable initiatives in the field of supporting local production. The document may change the rules for companies' access to public procurement and subsidy programs, and has caused a particularly sharp reaction in the automotive industry.
According to Reuters, automakers fear that the new requirements will disrupt existing global supply chains and actually restrict access to the European market for cars assembled in the UK. This is especially sensitive for electric vehicles, which actively participate in government tenders and preferential programs.
According to the draft, six months after the law comes into force, electric vehicles purchased under government programs will not only have to be assembled in the EU, but will also consist of 70% components of European origin. At the same time, batteries are not included in this share.
The broader scope of the initiative also implies additional conditions: subsidy programs may require the level of localization of production and the carbon footprint of products.
The issue is particularly sensitive for the UK, as London is counting on the status of a "reliable partner" in the new system. The SMMT warns that a possible exclusion would hit joint investments and put at risk trade relations in the automotive sector, estimated at about 80 billion euros.
The EU-27 countries, as well as Iceland, Liechtenstein and Norway, will automatically be eligible to participate in the new mechanisms. The remaining states will be able to claim access only if there is reciprocity — that is, if they open their procurement or subsidy markets to European companies. The final list of participants has not yet been made public.
The draft also provides for exceptions. They can be applied in cases where European-made goods are unavailable or when a change of supplier will lead to a significant increase in the cost of projects.
Another block of the initiative concerns foreign investments. If investments in strategic industries exceed 100 million euros, the investor may face restrictions on the ownership structure, requirements to hire employees from Europe, and obligations to license intellectual property. Such conditions are proposed to be applied if the investor's country of origin accounts for at least 40% of the world's capacity in the relevant field.
Thus, the new law may be an important step towards strengthening the industrial sovereignty of the EU, but at the same time creates risks for foreign partners, primarily for the British automotive industry, which, after Brexit, is already operating in an environment of increased