Industrial Accelerator Act: what ‘Made in Europe’ will mean for manufacturers and public buyers

The Industrial Accelerator Act (IAA) is the European Commission’s proposal, published on 4 March 2026, to use public money as a lever for European industry. If adopted as proposed, public buyers and public support schemes would have to favour steel, cement, aluminium and electric vehicles that are low-carbon and made in the EU from 2029. The same regulation sets conditions for large foreign investments in strategic sectors and speeds up industrial permitting. Parliament and Council are now forming their positions; adoption is not expected before 2027.

What the Commission proposed

The IAA is a draft regulation with three strands: creating lead markets for low-carbon, EU-made products through public procurement and public support; attaching conditions to large foreign investments in emerging strategic sectors; and accelerating permits for industrial projects. It is part of the Commission’s aim to raise manufacturing’s share of EU GDP from 14.3% in 2024 to 20% by 2035. The initial scope covers steel, cement, aluminium, the automotive sector and net-zero technologies, with the option to add other energy-intensive sectors such as chemicals later.

The procurement rules in figures

From 1 January 2029, contracting authorities would have to apply minimum requirements when they buy the following products:

Suppliers would show compliance through a self-declaration or an equivalent document, building on the Construction Products Regulation and the Ecodesign for Sustainable Products Regulation. Buyers could derogate where there is no reasonable alternative, no suitable tender, or disproportionate cost or delay. Products and components from countries that have a free trade agreement or customs union with the EU would in principle count as ‘Union origin’, both in public procurement and in the support schemes concerned. Countries linked to the EU only through the WTO Government Procurement Agreement (GPA) would count for public procurement only. For procurement, this applies to the extent that the EU has relevant treaty obligations towards the country concerned, and in both cases the Commission could exclude countries in whole or in part. The rule equates the origin of products and components; it gives foreign companies no automatic right to subsidies (Articles 8, 9 and 12 of the proposal).

Subsidies, net-zero technologies and vehicles

Member States would have to design their support schemes so that beneficiaries meet minimum EU-origin and/or low-carbon shares for steel, cement, mortar and aluminium. This would apply to schemes representing at least 45% of national support budgets for energy-intensive industry, and to all support for electric, hybrid and fuel-cell vehicles. The proposal also extends EU-origin requirements to public procurement and auctions for net-zero technologies, by amending the Net-Zero Industry Act.

Conditions on foreign investment

Investments of more than €100 million in batteries, battery storage, electric and hybrid vehicles, solar PV and critical raw materials would need prior approval when the investor’s home country holds more than 40% of global manufacturing capacity in that sector. The conditions include technology and knowledge transfer, local content, integration into EU value chains and at least 50% EU workers.

Faster permits

Each Member State would set up a single digital access point and issue one comprehensive decision for industrial manufacturing projects and for decarbonisation projects in energy-intensive industry, within set deadlines. Member States would also designate industrial manufacturing acceleration areas, where common authorisations are covered by a baseline permit before individual projects apply.

Where the file stands (22 October 2026)

• European Parliament. The industry (ITRE), internal market (IMCO) and trade (INTA) committees handle the file jointly, with co-rapporteurs Christophe Grudler (Renew Europe), Pierre Jouvet (S&D) and Anna Cavazzini (Greens/EFA). Their draft report of 8 September goes further than the Commission: a 50% ‘Made in Europe’ threshold by 2036 for strategic sectors, plastics for construction added to the scope, higher EU-content requirements for net-zero technologies and stricter rules against circumvention. The draft report would also reserve public support, initially, for EU27 companies in electric vehicles, heavy industry, clean technologies and shipbuilding, with third-country firms able to opt in against seven criteria. More than 5,000 amendments have been tabled. Among them, EPP shadow rapporteur Dirk Gotink (INTA) proposes opening eligibility to free trade and GPA partners, which would have one year to demonstrate reciprocity, and S&D members propose lowering the investment-screening threshold from €100 million to €50 million. The committee vote is planned for 1 December 2026, although some observers doubt that date will hold given the volume of amendments. Parts of the EPP and the ECR group consider the text too complex and the investment conditions too restrictive.
• A rejection amendment from within the EPP. Three EPP members of the industry committee — Christian Ehler, Angelika Niebler and Jürgen Warborn — have tabled an amendment to reject the proposal altogether. In their view, the IAA does not tackle the causes of Europe’s lost competitiveness, risks trade conflicts and possible breaches of WTO rules, and the EU should rather strengthen its trade defence instruments. S&D co-rapporteur Pierre Jouvet strongly condemned the move. Parliament is still expected to back the act with amendments rather than reject it, and the EPP says it is working towards a common group position — but the move shows where the fault line runs: how far ‘European preference’ should go, and what it means for trading partners.
• Council. Industry ministers held a first debate on 28 May 2026 and received a state of play on 24 September. In a three-hour discussion among Member States’ ambassadors (Coreper) on 7 October, a majority leaned towards including ‘trusted’ third countries — EEA members, free trade partners and parties to the WTO Government Procurement Agreement — subject to full and verified reciprocity, a ‘Made with Europe’ approach. Most also prefer to judge eligibility by the origin of products and components rather than by the nationality or ownership of companies. France, supported by Italy and Slovakia among others, argues for a narrower ‘Made in EU’; Poland questions the low-carbon criteria. According to Agence Europe, the Irish Presidency’s compromise text of 16 October follows the majority but narrows it: for public procurement, GPA parties and free trade or customs-union partners would count where the EU has procurement commitments covering the product; for other public support, only free trade and customs-union partners. Third countries would be included or excluded product by product rather than across the board — for instance where they deny national treatment to EU products, or to avoid high-risk dependencies, circumvention or threats to security of supply — and the Commission would have to consult Member States and show that an exclusion is proportionate. At Denmark’s request, wind power is added to the sectors where large foreign investments can be screened. National experts examine the text on 26 October; the Presidency aims for a negotiating mandate in November.
• A Franco-German deal on cars. On 16 October, on the margins of the European Council, Chancellor Merz and President Macron presented a joint position. According to EUobserver, car rules would be taken out of the IAA and placed in a separate automotive package, with stricter ‘Made in Europe’ requirements covering fewer countries: from 2028, cars receiving public support or bought by public authorities would have to be assembled in Europe, with at least 70% of total value creation in components, excluding the battery. Both files would be adopted at the same time. In return, France backs softer CO₂ standards for cars — according to electrive, reporting Der Spiegel, a 90% cut by 2035 without the compensation the Commission’s proposal requires for the remaining 10%. Other Member States still have to agree, and Paris hopes the car definition will become a benchmark for the rest of the IAA.
• Timing. Adoption is not expected before 2027. As proposed, the procurement requirements would apply from 1 January 2029.

What it means in Belgium

In Belgium, the IAA lands on several desks at once.

• Public procurement law is federal (the law of 17 June 2016), but the buyers are federal, regional and local: ministries, regional administrations, municipalities, intermunicipal companies and infrastructure operators. Each would have to apply the new content rules in its tenders.
• Support schemes for industrial decarbonisation are largely regional, so the new conditions would be applied by Flanders, Wallonia and Brussels to their own budgets.
• Permitting is regional: the single digital access point and the acceleration areas would have to be organised by three regions, each with its own permit system.
• Foreign investment screening already runs through an interfederal mechanism in force since 1 July 2023; the IAA conditions would come on top.

Belgium’s position in the Council is agreed between the federal government and the regions. Input therefore matters at both levels, and early.

What to do now

1. Map your exposure. Do you sell steel, cement, concrete, aluminium or vehicles to public buyers — directly or through contractors — or depend on public support schemes?
2. Document origin and carbon footprint. Low-carbon claims would rest on instruments under the Construction Products and Ecodesign regulations, such as environmental product declarations. Start collecting the data now.
3. Check your non-EU supply chain. Whether a supplier’s country counts as ‘Union origin’ depends on its trade relationship with the EU: free trade and customs-union partners would in principle count for both procurement and support schemes, countries covered only by the GPA for procurement only — and the Commission could exclude countries, under the latest Council text product by product. With most Member States leaning towards a broad ‘Made with Europe’ scope and France and Germany pushing for stricter rules for cars, plan for both outcomes. Vehicle and component suppliers should test their products against the proposed 70% value-creation threshold.
4. Engage while the text is open. Scope, thresholds, derogations and third-country treatment are being negotiated in Parliament and Council over the coming months. With more than 5,000 amendments on the table and the EPP — the largest group — still settling its position, the weeks before the Council mandate and the December committee vote are the window to weigh in. In Belgium, that means talking to both the federal and the regional level.

Sources

1. European Commission, Commission proposes new measures to boost EU industry and jobs, 4 March 2026, and the proposal for the Industrial Accelerator Act itself (Articles 8, 9 and 12 on Union origin and third countries).
2. European Parliament, Legislative Observatory, procedure 2026/0068(COD) and Legislative Train: Industrial Accelerator Act.
3. Renew Europe, Presenting the draft report on the Industrial Accelerator Act, 8 September 2026.
4. Agence Europe, Three European Parliament co-rapporteurs on Industrial Accelerator Act think it possible to reconcile different points of view.
5. Agence Europe, IAA: Ireland sees significant progress towards agreement after EU27 set out firmer positions, 8 October 2026.
6. MLex, Center-right lawmakers seek rejection of EU’s Industrial Accelerator Act, 7 October 2026.
7. Agence Europe, IAA and ‘automotive package’: France and Germany reportedly ready to make concessions to unblock negotiations, 8 October 2026.
8. electrive, France set to follow Germany in softening CO2 targets, 7 October 2026 (reporting FAZ and Handelsblatt), and EU Parliament mulls watered-down CO₂ reductions for cars in Auto Package debate, 20 October 2026 (reporting Der Spiegel).
9. EUobserver, Germany and France want own ‘Made in Europe’ rules for cars, outside EU industrial policy, 16 October 2026.
10. Agence Europe, Industrial Accelerator Act: with over 5,000 amendments, European Parliament groups sharpen arguments ahead of examination of text, 15 October 2026 (paywall).
11. Agence Europe, Irish Presidency of EU Council narrows Commission powers to exclude third countries from ‘Made in Europe’, 20 October 2026 (paywall).
12. Euronews, Paris motor show: Macron calls for European preference against China, 11 October 2026.
13. MLex, Ireland eyes industry law deal among EU govts in November despite divisions, 12 October 2026.
14. Council of the EU, Competitiveness Council of 28 May 2026 and 24 September 2026.
15. Linklaters, European Commission publishes draft Industrial Accelerator Act.
16. Loyens & Loeff, The EU Industrial Accelerator Act: takeaways for public procurement.
17. Holland & Knight, The European Union’s ‘Made in Europe’ push, May 2026.
18. Carbon Brief, Q&A: What the EU’s new industry and ‘Made in Europe’ rules mean for climate action.
19. CMS, The Belgian foreign direct investment regime comes into force on 1 July 2023.

This analysis reflects the state of the file on 22 October 2026. We update it when the file moves.