European Commissioner for Industrial Strategy Stéphane Séjourné presented the Industrial Acceleration Act (IAA) to a joint meeting of the European Parliament's INTA, ITRE and IMCO committees on 2 June 2026, proposing a framework to boost industrial capacity and decarbonisation in strategic sectors. Séjourné argued that Europe faces an unprecedented industrial crisis due to China's state-subsidised overcapacity, citing 200,000 EU job losses since 2024 and China's dominance in steel, batteries and solar panels.
European preference in public procurement (with a 'made in Europe' requirement for key components like battery cells and solar inverters), conditional foreign direct investment (FDI) screening (for investments over €100 million from countries with >40% global capacity, requiring tech transfer, 50% EU jobs, and a 49% foreign ownership cap), and permitting simplification via a single digital one-stop shop and priority industry zones. Séjourné stressed reciprocity for trusted partners and self-declaration to minimise red tape.
Co-rapporteurs broadly welcomed the text but pushed for stronger ambition. Anna Cavazzini (Greens-EFA, INTA) stressed the need for strict criteria for trusted partners and effective investment conditionings to avoid circumvention. Christophe Grudler (Renew, ITRE) criticised the current scope covering 80+ non-EU countries, arguing 'made in Europe' must be meaningful and that thresholds for components are too limited. Pierre Jouvet (S&D, IMCO) called for clearer rules of origin, lower derogation thresholds (currently 25-30%), and social conditionality across the entire text.
Divergences on scope and ambition
Divergences emerged on scope and ambition. Dirk Gotink (EPP, INTA) warned against overcomplicating the text, urged caution on setting industrial targets (citing Chinese inefficiencies), and stressed not closing doors to allies. Tomislav Sokol (EPP, IMCO) welcomed the direction but noted the need to balance openness with competitiveness. The debate highlighted a split between those seeking stronger European preference and those warning against protectionism and administrative burden.
the three committees will now work on amendments, with a tight timeline given the urgency. Affected stakeholders include energy-intensive industries (steel, aluminium, cement, chemicals), automotive, clean tech (batteries, solar, wind, heat pumps, nuclear), and SMEs, who fear compliance costs but stand to benefit from demand guarantees.