Germany and Spain have disagreed on how to interpret the 'Made in Europe' laws in the Industrial Acceleration Act (IAA). By presenting different positions in the form of non-paper documents in Brussels, the two countries have set the stage for difficult negotiations over this European Union law.
Details of the Industrial Acceleration Act
The Industrial Acceleration Act, introduced by the European Commission in March, aims to steer government orders and support programs of EU countries more towards domestic companies. This move is intended to help these companies compete with Chinese exporters.
Six months after the introduction of this law, the 27 EU member countries have yet to reach a common agreement. One of the key issues is whether 'Made in Europe' benefits should be valid only for EU companies or should also include other countries.
Conflicting Positions of Germany and Spain
Germany, recognized as the EU's export hub, emphasizes a broader definition of 'Made in Europe.' This definition generally aligns with the Commission's initial proposal and includes countries that have free trade agreements or supply agreements with the EU. Germany's document stresses the rejection of protectionism and discrimination, calling for the EU to remain a reliable partner for free trade countries.
In contrast, France and Spain have proposed a more limited approach. French Minister of Industry, Sébastien Martin, has emphasized that public investment in domestic production in Europe must occur for products to benefit from public support.
Spain is also seeking to establish a three-tier structure for products manufactured in the EU, where products produced within the union will have the highest priority.
Efforts to Reach an Agreement
Ireland, which holds the presidency of the EU Council until the end of the year, is working to reduce the disagreements. Dublin will hold a meeting for embassy representatives on October 7 and hopes to present a new proposal by mid-month. The goal is to reach an agreement by November.
However, the disagreements among EU countries have also spilled into parties, with German and Spanish factions in the largest group in the European Parliament also at odds over this law. It is expected that Members of the European Parliament will review the draft report on September 28.
