Berlin seeks to expand the EU’s “Made with Europe” regulations to include trade partners, opposing France’s effort to restrict public contracts to goods produced in Europe.
The German government has urged the EU to extend its proposed "Made with Europe" regulations to nations beyond the bloc, as revealed in a position paper acquired by Euronews, positioning it for a conflict with France.
Berlin is at the forefront of advocating for a more open-market stance regarding the Industrial Accelerator Act (IAA), a proposed EU regulation that would limit public procurement — government contracts for items like steel, batteries, and electric vehicles — to products and companies that fulfill baseline EU production standards.
While the Commission's initial wording supports "Made in Europe," Berlin advocates for "Made with Europe": instead of mandating products to be produced in the EU, it seeks to broaden origin regulations to include the bloc's trading partners, provided those nations grant equivalent access to European businesses.
"Germany dismisses protectionism and bias." "In periods of geopolitical and geoeconomic difficulties, the EU depends on strong partnerships — especially its worldwide network of free trade agreements — to boost resilience and competitiveness," states the position paper.
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The document was shared prior to Thursday's Competitiveness Council in Brussels, where EU industry ministers conversed about industrial policy.
The effort emphasizes the contrast between Berlin's free-market strategy and Paris's drive to leverage public contracts to aid European firms facing the challenges of the so-called China 2.0 shock.
The identical strategic gap reaches beyond industrial policy into defense.
"The document states that the EU should continue to be a trustworthy ally for its free trade partners and fulfill its legal commitments in line with its international obligations."
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Berlin seeks to extend the EU origin regulations to nations that have ratified the WTO Agreement on Government Procurement, which allows members to grant public contracts to each other's firms, along with countries that have a free trade agreement or customs union with the EU.
Germany contends that this would motivate partner nations to seek bold trade agreements and expand their markets to European businesses.
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Berlin further contends that increasing the number of bidders in EU public procurement would reduce expenses and enhance quality for public entities.
Nevertheless, Berlin seeks for the EU to respond swiftly if a partner nation ceases to provide reciprocal access, via an "opt-out" mechanism that permits its exclusion from the program.