26. 05. 2026
AUTHOR: Tristan Beucler
On 28 May, industry ministers will meet for a Competitiveness Council in Brussels to start the negotiations of the Industrial Accelerator Act, at a crucial time for the European Union’s (EU) industry. Two years into this political mandate, pressures on the European industry are still putting the continent’s growth and independence at risk. Flagship projects, such as Carbon’s planned solar gigafactory in the South of France, are being cancelled due to a lack of security for EU production, and the EU’s industry lacks the necessary conditions to scale up.
Yet, several pieces of legislation currently under discussion at the EU level have the potential to turn the tide and create the right framework for the EU’s strategic industries, chief among them the Industrial Accelerator Act. Turning them into a successful industrial policy will require political will. In the words of former European Central Bank President Mario Draghi, “Europe cannot afford ideological rigidity”.
The foundations of a Made-in-Europe industrial policy
This Competitiveness Council will be the first opportunity for national governments to discuss the Commission’s proposal for an Industrial Accelerator Act. This Act can lay the foundations for the EU’s industrial policy of the coming decade by creating the conditions for cleantech companies and energy-intensive industries to manufacture on the continent.
This Act has significant potential to stimulate predictable demand for EU-made technologies and products. It signals the EU’s willingness to align with its main trading partners and use taxpayer money strategically to support its own value chains rather than subsidise cheaper imports. However, some uncertainty remains in the Act regarding the geographical definition of Made-in-Europe, the flexibilities for conditionalities on Foreign Direct Investment, and the risk of fragmented implementation due to possible opt-outs by public authorities. Ministers have an opportunity to address these uncertainties to ensure a proposal that starts turning the tide of deindustrialisation, rather than one that offers good intentions but cannot deliver impactful change.
An opportunity to deliver an impactful Act
Ministers can focus on three key points:
- With the Industrial Accelerator Act, the EU can set a standard for its industrial policy, with spillover effects on other pieces of legislation in the circular economy, digital, and defence. It can send a strong message to the industry and international partners: the time has come to level the playing field and support local manufacturing in strategic sectors. The direction is right, but crucial details are necessary to create a policy that preserves jobs, boosts competitiveness, and ensures European leadership. This does not prevent adding trusted partners after negotiations.
- To maximise the impact of the Act, the Council can ensure that it relies on a clear, targeted definition of Made-in-Europe and that it is applied coherently across the continent. Crucial sectors, like steel production and cleantech manufacturing, depend on incentives to produce in Europe. Faced with unfair competition, they may not be able to invest locally without clear measures in favour of local production. A Made-in-Europe definition based on the European Economic Area, with the option to opt-in trusted partners, can effectively support local value chains.
- Industrial leadership requires scale, and in an increasingly tense geoeconomic context, the EU cannot compete if it is divided. Applying the measures of the Industrial Accelerator Act broadly will be key to ensuring its impact. Limiting price exceptions, ensuring a broad policy scope, and implementing consistent conditions for FDI can prevent further fragmentation of the single market and strengthen the EU’s industrial leadership.
With the ongoing negotiations for the next Multiannual Financial Framework, the EU can link these industrial policy debates to its budget, ensuring sufficient funding for its reindustrialisation. Through the new European Competitiveness Fund, which is set to contain €410 billion and govern the Innovation Fund and Industrial Decarbonisation Bank, the EU can ensure significant funding for its strategic sectors, with a European preference principle.
