The European Commission has outlined a new legislative initiative, the Industrial Accelerator Act (IAA), which introduces targeted origin requirements for public procurement to boost EU manufacturing in strategic sectors such as aluminium, cement, electric vehicles, and net-zero technologies. The policy, detailed in a response to a parliamentary question from Siegbert Frank Droese of the Europe of Nations and Freedom group, aims to enhance EU industrial resilience and competitiveness without escalating trade tensions, with an impact assessment suggesting limited price increases for consumers.
The IAA builds on a series of recent EU industrial policy moves. On April 9, the European Heat Pump Association released data showing that Europe already produces around 70% of air-to-water heat pumps domestically, and the IAA's requirement for hydronic heat pumps to be EU-originating three years after entry into force aligns with the Commission's broader push for clean-tech manufacturing, as outlined in the Industrial Accelerator Act. This follows Commissioner Maroš Šefčovič's April 15 response to a parliamentary question on steel sector protection, where he detailed measures like tariff-rate quotas to boost EU steel access to US markets, reiterating the EU's commitment to shielding strategic industries from global trade frictions.
The IAA also echoes themes from Commissioner Wopke Hoekstra's March 31 speech on the Clean Industrial Deal, which emphasised 'Buy European' policies to reinforce EU internal markets. The debate over European preference in procurement was a key point of contention during the March 24 IMCO committee structured dialogue with Executive Vice-President Stéphane Séjourné, who proposed a compromise with self-declaration and ex post controls to open foreign markets while levelling the playing field. This dialogue followed an ITRE committee debate on March 24 where Séjourné championed an integrated industrial strategy linking resilience, sovereignty, and European preference, clashing with MEPs who favoured less regulation and national solutions.
The IAA's focus on public procurement as a tool for industrial policy is consistent with President Ursula von der Leyen's February 12 'One Europe, One Market' roadmap, which aims for a fully integrated internal market by 2027 and includes cutting red tape through omnibus packages. The Commission's response signals a forward path for the IAA's legislative debate, balancing preferential purchasing with adherence to international trade commitments, as Séjourné confirmed that the IAA introduces origin requirements only when public money is involved, carefully limited to strategic sectors, and complies with existing trade rules to avoid discrimination against non-EU suppliers.
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