Commission proposes new measures to boost EU industry and jobs

The European Commission has proposed the Industrial Accelerator Act, a set of new measures to increase demand for low-carbon, European-made technologies and products. These measures will boost manufacturing, support business growth, and create jobs in the EU, while accelerating industry's shift to cleaner, future-ready technologies.

Building on the strengths of the single market, the measures will

• support lead markets for 'Made in EU' and low-carbon products
• ensure that foreign direct investments bring tangible value to the EU
• simplify permitting
• boost sustainable manufacturing

Based on the recommendations of the Draghi report, the Act introduces new 'Made in EU' and/or low-carbon requirements in public procurement and public support schemes. These measures will strengthen European production capacities and increase demand for European-made clean technologies and products. The rules will apply to selected strategic sectors such as steel, cement, aluminium, automotive, and net-zero technologies, with the possibility of extension to other energy-intensive sectors such as chemicals.

The measures aim to increase value creation in the EU. They will strengthen EU's industrial base amid growing global competition and increasing dependencies on non-EU suppliers in strategic sectors. They support long-term economic growth, prosperity and security and set a goal to increase manufacturing's share of EU GDP from 14.3% in 2024 to 20% by 2035.

At the same time, the EU is committed to remaining one of the world's most open markets, viewing it as a key source of economic strength and resilience. The proposal encourages greater reciprocity in public procurement by giving equal treatment to countries that offer EU companies access to their markets. Partners can be included in public procurement if they have signed the Government Procurement Agreement, which guarantees reciprocal access.

While remaining open to foreign direct investment, certain conditions will apply for major foreign investments in strategic sectors. These conditions apply to investments of at least €100 million by companies from non-EU countries that control more than 40% of global manufacturing capacity in areas such as electric vehicles, batteries, solar, and critical raw materials. To qualify, such investments must create high-quality jobs, drive innovation and growth, generate real value in the EU through technology and knowledge transfer, and comply with local content requirements. They must guarantee at least 50% employment of EU workers. These safeguards are designed to strengthen EU economic security and reinforce supply chain resilience, while ensuring that businesses and citizens benefit alongside investors from access to the single market.

This initiative was announced as part of the Clean Industrial Deal and the joint communication on strengthening EU economic security. It is now for the European Parliament and the Council to adopt it before it enters into force.

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