European Commission Presses Heavy Industry to Support “Made in Europe”

The Made in Europe manufacturing push is moving into its most consequential phase, with the European Commission urging leaders of energy-intensive industries to publicly endorse a new industrial strategy ahead of the bloc’s forthcoming Industrial Accelerator Act. In a letter circulated to executives in sectors such as steel and aluminium, the Commission argues that Europe must choose between building industrial strength at home or watching core capabilities migrate abroad.

The message is direct: public money should reinforce European production. Under the Made in Europe manufacturing push, access to EU funding, procurement contracts, and strategic programmes increasingly depend on whether products are made within the Union. The Commission frames this as a response to a world shaped by subsidies, trade barriers, and industrial rivalry—conditions that no longer reward laissez-faire policy.

The Industrial Accelerator Act, expected later this year, is designed to bridge two objectives that often clash: decarbonising heavy industry while keeping it globally competitive. Europe has already set a precedent by prioritising domestic clean-tech manufacturing in earlier climate legislation. The new act extends that logic to the industrial backbone—steel, aluminium, chemicals, and other energy-hungry sectors that anchor European supply chains.

At the heart of the Made in Europe manufacturing push is demand creation. Instead of relying solely on subsidies, Brussels wants to shape markets. Public procurement, infrastructure projects, and EU-backed programmes would act as “lead markets” for European-made products, especially low-carbon materials such as green steel. The goal is to guarantee offtake, reduce risk for investors, and keep production within the Single Market.

Design choices remain open. Internal discussions have floated targets ranging from 60% to 80% for European-made content, though no figure has been locked in. Another unresolved issue is eligibility: whether output from non-European companies manufacturing inside the EU would qualify. Current thinking leans toward “made in Europe” rather than “owned in Europe,” broadening the scope of the policy while anchoring production locally.

Not all capitals are convinced. Several member states have warned that such an approach could distort competition, inflate costs, or entrench advantages for larger economies. Others have asked for a complete impact assessment before any binding thresholds are set. These concerns go to the core of the Single Market’s promise—open competition across borders.

Industry voices, however, are increasingly aligned with Brussels. Executives point to Europe’s widening trade gap with China and argue that the Industrial Accelerator Act should be treated as an act of economic independence. Many are pressing for practical instruments: auctions for green materials, targeted state aid, and access to new EU funding pools.

If implemented well, the Made in Europe manufacturing push could reshape Europe’s industrial model—turning climate policy into a growth engine while restoring strategic autonomy. The risk lies in execution. The policy must generate scale without fragmenting the market, and protection without complacency. The coming months will determine whether Europe can convert ambition into industrial momentum.