EU says it will set 70% "Made in Europe" target for key goods
cls.cn | 2025-12-03
It is reported that the EU is currently considering setting a "Made in Europe" goal of up to 70% for specific goods, including cars. This move is aimed at prioritizing the purchase of local goods to reduce the EU's dependence on other countries in the fields of clean technology and some heavy industries.
According to officials familiar with the draft bill, which will be submitted on December 10, the policy may force EU companies to purchase more expensive European parts and components, resulting in additional costs of more than 10 billion euros per year.
Stéphane Sejournet (French), Executive Vice President of the European Commission in charge of industrial strategy and other matters, is currently responsible for the proposal. The proposal also marks the culmination of France's years-long strategy to focus on promoting local production at a time when Europe's weak industrial sector is struggling to cope with competition from cheap imports from Asia.
"What we are trying to propose is a delicate balance between the much-needed protection of our industrial sectors on the one hand and openness on the other - something that is particularly dear to Europe's DNA," an EU official said.
It is reported that previously skeptical countries such as Germany have said that given the current economic situation, they will be more inclined to support "Buy Europe" rules, which may affect the automotive industry and clean technology fields such as solar panels.
According to three EU officials, as part of its industrial policy plan, the EU is discussing setting the localization threshold at around 70%, but the specific target will vary according to the importance and dependence of the industry.
Taking cars as an example, future government incentives may only apply to qualified models. Battery products will also be required to meet certain European localization ratios, another official said.
This measure only applies to scenarios where public funds are used, such as procurement contracts, state-guaranteed loans and grants. Another official revealed that the EU will also evaluate the production capacity of various parts and components.
Officials involved in the negotiations revealed that the bill, called the Industrial Accelerator Act, may still be modified or even delayed due to disagreements within the European Commission on some provisions. One official said the French commissioner would ideally want to limit the definition of "Europe" to within the EU.
It is worth mentioning that WTO rules generally prohibit member states from favoring local producers, but there are exemptions when security factors are involved.
According to the EU's proposed new regulations, the main components of the solar inverter industry that may pose a safety risk may have to be manufactured in Europe. “In this case, there is a need to increase the localization rate,” said an EU official.
But some officials are now worried that products made in Europe may be much more expensive than imported goods from Asia, which will lead to further increases in business costs. Given that many imported goods are already used to produce finished goods such as cars within the EU, the move could also result in some products eventually being priced out of the market.
The Commission's proposal is expected to include provisions forcing public institutions to procure European products and push for the creation of leading markets for clean technologies. Officials are discussing setting up a voluntary "green steel" label to encourage manufacturers to purchase steel products with lower carbon emissions but higher costs in the EU.
An EU official said that the 70% procurement ratio may eventually be reduced, and that progress in negotiations on localized content rules is expected to be difficult.
According to officials familiar with the draft bill, which will be submitted on December 10, the policy may force EU companies to purchase more expensive European parts and components, resulting in additional costs of more than 10 billion euros per year.
Stéphane Sejournet (French), Executive Vice President of the European Commission in charge of industrial strategy and other matters, is currently responsible for the proposal. The proposal also marks the culmination of France's years-long strategy to focus on promoting local production at a time when Europe's weak industrial sector is struggling to cope with competition from cheap imports from Asia.
"What we are trying to propose is a delicate balance between the much-needed protection of our industrial sectors on the one hand and openness on the other - something that is particularly dear to Europe's DNA," an EU official said.
It is reported that previously skeptical countries such as Germany have said that given the current economic situation, they will be more inclined to support "Buy Europe" rules, which may affect the automotive industry and clean technology fields such as solar panels.
According to three EU officials, as part of its industrial policy plan, the EU is discussing setting the localization threshold at around 70%, but the specific target will vary according to the importance and dependence of the industry.
Taking cars as an example, future government incentives may only apply to qualified models. Battery products will also be required to meet certain European localization ratios, another official said.
This measure only applies to scenarios where public funds are used, such as procurement contracts, state-guaranteed loans and grants. Another official revealed that the EU will also evaluate the production capacity of various parts and components.
Officials involved in the negotiations revealed that the bill, called the Industrial Accelerator Act, may still be modified or even delayed due to disagreements within the European Commission on some provisions. One official said the French commissioner would ideally want to limit the definition of "Europe" to within the EU.
It is worth mentioning that WTO rules generally prohibit member states from favoring local producers, but there are exemptions when security factors are involved.
According to the EU's proposed new regulations, the main components of the solar inverter industry that may pose a safety risk may have to be manufactured in Europe. “In this case, there is a need to increase the localization rate,” said an EU official.
But some officials are now worried that products made in Europe may be much more expensive than imported goods from Asia, which will lead to further increases in business costs. Given that many imported goods are already used to produce finished goods such as cars within the EU, the move could also result in some products eventually being priced out of the market.
The Commission's proposal is expected to include provisions forcing public institutions to procure European products and push for the creation of leading markets for clean technologies. Officials are discussing setting up a voluntary "green steel" label to encourage manufacturers to purchase steel products with lower carbon emissions but higher costs in the EU.
An EU official said that the 70% procurement ratio may eventually be reduced, and that progress in negotiations on localized content rules is expected to be difficult.
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