The cabinet of the Industrial Strategy Commissioner Stéphane Séjourné announced that the European Commission will postpone the unveiling of the European Union's industrial reindustrialization plan, citing ongoing disagreements among member states.
The original presentation date of the French-led Industrial Accelerator Act (IAA) in December was postponed due to ongoing opposition from various countries and factions within the European Commission. This delay ultimately led to the proposal being rescheduled for 4 March following three unsuccessful attempts.
In addition to encountering resistance within the European Union, Brussels is currently confronted with opposition from the US. The American ambassador to the EU has stated that Washington opposes any attempts to integrate European preferences into the bloc's public procurement regulations.
According to a confidential document obtained by Euronews, the European Union commission promotes the establishment of optional labeling programs for environmentally-friendly "Made in the EU" goods to evaluate industry participation, with a specific focus on the steel sector.
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"The proposal for a label on the carbon intensity of steel is needed to provide a common EU approach on calculating GHG emissions, facilitating the differentiation of low-carbon steel from high-carbon alternatives," according to the document.
Industry Analyst Tristan Beucler, from the think tank Strategic Perspectives, recommended the prompt announcement of the law by the EU executive. He emphasized that all necessary criteria for a successful IAA, which would bolster EU strategic industries, have been satisfied.
"There is strong alignment among national governments, cross-party support in the European Parliament, and calls from across the EU’s industrial value chains for this policy".
"Now, the European Commission can make sure its internal bureaucracy does not stand in the way of a much-needed industrial policy,” Beucler says.
It is anticipated that the Commission will also put forth a goal regarding the percentage of European goods to be manufactured within the European Union according to the forthcoming legislation. The contentious legislation identifies key industries earmarked for preferential treatment within Europe, including chemicals, automotive, artificial intelligence, space, and defense.
Additionally, it puts forth specific thresholds for the origin of products within the EU, such as 70 percent for electric vehicles, 25 percent for aluminum, and 30 percent for plastics utilized in windows and doors. The reasoning behind the proposal led by France is to enhance domestic consumption of EU-made and low-carbon products through the IAA.
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This initiative aims to drive demand in the European market, enhance industrial competitiveness, and diminish reliance on high-carbon or imported alternatives. The Nordic and Baltic nations caution that implementing a stringent "Made in Europe" policy could discourage investment and restrict European Union enterprises from obtaining state-of-the-art technologies available from countries outside the EU.