S&D MEPs Sofie Eriksson and Adnan Dibrani have raised concerns that the European Commission's proposed Industrial Acceleration Act (IAA) could exclude EU-based manufacturers from public procurement solely because of their ownership structure, potentially harming European workers and investments. In a written parliamentary question submitted on 11 June 2026, the MEPs challenge Article 11 of the IAA, which would bar companies controlled by entities from third countries without an EU market access agreement from bidding on public contracts in strategic sectors such as electric vehicles. They argue this could penalise firms that manufacture in the EU, employ European workers, and contribute to the bloc's industrial base.
The question asks the Commission to clarify whether it intends to exclude such companies from public tenders based on ultimate ownership rather than their economic contribution. The MEPs also demand an impact assessment of the proposed rule, including the number of jobs at risk in affected sectors, and whether the ownership-based approach could undermine the IAA's own goals of strengthening European competitiveness and industrial capacity by excluding firms that make significant investments and conduct R&D in Europe.
The IAA, proposed by the Commission on 4 March 2026, aims to accelerate industrial capacity and decarbonisation in strategic sectors. The MEPs' question highlights a potential tension between protecting EU strategic autonomy and maintaining an open, investment-friendly environment. The Commission is expected to respond within approximately six weeks, and its answer will signal whether it plans to refine the ownership criteria or proceed as drafted. The outcome could affect EU-based subsidiaries of foreign-owned companies, their workers, and public authorities managing procurement in sectors like electric vehicles.