The EU Competitiveness Council on 28 May 2026 revealed deep divisions over the Industrial Accelerator Act, with a majority of member states pushing back against a strict 'Made in Europe' approach favoured by France, Italy, Spain, Greece and Austria. The debate, centred on the Commission's proposal to counter subsidised foreign competition through European preference, strategic FDI conditions and faster permitting, exposed a north-south and east-west split on how far to prioritise domestic production over international value chains.
Czechia, Poland, Slovakia, Romania, Luxembourg, Sweden, Denmark, Germany, the Netherlands, Lithuania, Finland and Malta argued for including trusted partners and respecting global supply chains, opposing the stricter 'Made in Europe' line. On low-carbon criteria, Poland, Czechia, Romania, Slovakia, Bulgaria and Portugal demanded technological neutrality and clear rules, while Denmark, Germany, the Netherlands, Luxembourg, Greece, Croatia and Hungary accepted criteria if workable. The urgency of the act also divided delegations: Italy, Belgium, the Netherlands, Latvia, Hungary and Ireland pressed for rapid action, while Spain, Portugal, Estonia, Slovenia, Finland and Malta urged caution.
On simplification, many delegations supported faster permitting but criticised the Commission's reliance on delegated acts. On FDI, Slovakia, Spain, Romania, Finland, Sweden, Croatia, Hungary and Luxembourg favoured targeted conditions, while Germany and Austria sought stricter controls. A large group including Czechia, Slovenia, Bulgaria, Lithuania, Germany, Spain, Romania, Austria, Sweden, Latvia and Portugal argued the act must be paired with affordable energy and ETS reform. On ETS benchmarks, Czechia (speaking for several states), Slovakia, Hungary, Poland, Romania, Austria, Italy, France and Spain demanded a freeze or revision, while Denmark, the Netherlands, Finland, Sweden and Germany defended ETS integrity.
Cyprus concluded with broad agreement on objectives and urgency, but the divergences suggest a difficult path to a final text. The Council also adopted conclusions on sustainable and competitive tourism, endorsed by Commissioner Apostolos Tzitzikostas as input for the future EU Sustainable Tourism Strategy.
EU producers would benefit from stricter 'Made in Europe' rules but face higher input costs if supply chains are disrupted; EU consumers could see higher prices from reduced competition; third-country trading partners risk market access restrictions; and EU regulatory bodies face complex implementation of delegated acts and FDI screening.