The Digester

EU unveils 'Made in EU' procurement rules to boost manufacturing

Mar 10th 2026

The European Commission's 'Made in EU' proposals in the Industrial Accelerator Act would use public procurement and investment limits to drive low-carbon manufacturing and reduce reliance on non-EU suppliers.

  • The Industrial Accelerator Act proposals set minimum EU sourcing rules for public-funded projects in strategic sectors.
  • Covered sectors include steel, cement, aluminium, cars, batteries, solar, wind and nuclear.
  • Example requirements would mandate 25% EU-produced low-carbon aluminium and 5% EU-produced cement for public projects.
  • 'Made in EU' status can apply to suppliers in countries with EU free-trade agreements or signatories to the WTO Government Procurement Agreement.
  • Investors would need at least 50% EU workers and foreign ownership would be capped at 49%.
  • The act would limit foreign direct investment to €100 million where a third country controls over 40% of global capacity, a restriction aimed mainly at China.
  • The Commission says the measures aim to raise EU manufacturing from 14% to 20% of GDP by 2035 while addressing recent job losses and supporting low-carbon goals.