European steel sector pushes for narrower scope under the Industrial Accelerator Act
The European steel sector is urging inclusion within the Made in Europe clause and calling for a restricted scope of the Industrial Accelerator Act, which the European Commission is expected to propose next Wednesday after three postponements. By prioritising European-manufactured goods in public procurement, the EU aims to mobilise nearly €2 trillion in state resources to strengthen European industry.
The measure forms part of the broader Clean Industrial Deal and is designed to shield EU companies from competition from China and the United States in strategic sectors considered critical, including batteries, solar and wind energy, and hydrogen production. The regulation would require that products purchased through public tenders or benefiting from production subsidies meet specific local content thresholds, meaning a share must be manufactured within the EU, and comply with low-carbon standards. It remains unclear whether low-emission steel will be included in the proposal put forward by the EU executive.
For this reason, Europe’s steel industry is pressing for the provisions to explicitly cover steel and for the local content requirement to apply only to the EU’s closest neighbours, such as Norway. The sector firmly opposes extending the scope to countries linked to the EU through free trade agreements but lacking environmental standards comparable to those in Europe, including India, China, or North African states.
Dispute over the Made in Europe clause
The absence of a shared vision on the geographic scope of the Industrial Accelerator Act has been one of the reasons for the delay. At this stage, the regulation is expected to include only Norway, Iceland and Liechtenstein, as members of the EU single market. Other countries, including Sweden and the Czech Republic, oppose “buy local” requirements, arguing that they could deter investment, inflate public procurement costs, and undermine the EU’s global competitiveness.
Diverging views also persist within the European Commission. The Directorate-General for Trade would favour a broader definition that encompasses countries with which the EU has free trade agreements, in order to avoid retaliation and accusations of protectionism. By contrast, the Directorate-General for Internal Market and Industry, led by French Commissioner Stéphane Séjourné, supports a narrower scope, potentially excluding the United Kingdom.
Paris advocates limiting the regulation strictly to EU and European Economic Area members to avoid setting precedents. European car manufacturers, however, fear that overly rigid rules could disrupt global supply chains and are pushing for the inclusion of additional partners, such as the United Kingdom and Turkey.
What the draft Industrial Accelerator Act includes
According to a draft seen by Reuters, each technology would be subject to specific European manufacturing requirements. For solar panels, inverters and two other key components, production would need to take place in Europe one year after the regulation enters into force, rising to three key components after an additional two years.
Manufacturers of electric vehicles purchased or leased through public tenders would be required to ensure that vehicles are assembled within the European Union and that 70 percent of their components, excluding the battery, are produced in Europe.
Aluminium producers benefiting from subsidies would have to meet a minimum threshold of 25 percent local and low-carbon production. For cement, the draft would set a minimum of 5 percent European production. Discussions are also under way regarding the introduction of a voluntary carbon intensity label for steel, aimed at making lower-emission products more easily identifiable.
Investment conditions
The draft proposal would also introduce conditions for foreign investments exceeding €100 million in strategic sectors where the investor originates from a country controlling at least 40 percent of global production capacity in that sector. The core criterion would be that the foreign investor does not hold a majority stake in an EU company and grants intellectual property licences to support investment within the EU.