Commission proposes Industrial Accelerator Act to strengthen industry and create jobs in Europe
The European Commission has adopted a proposal for an Industrial Accelerator Act (IAA) to increase demand for low-carbon, European-made technologies and products.
The Act aims to boost manufacturing, support business growth and job creation, and accelerate industry's transition to cleaner technologies.
In line with the Draghi report, the IAA introduces targeted 'Made in EU' and/or low-carbon requirements for public procurement and public support schemes in strategic sectors such as steel, cement, aluminium, cars and net-zero technologies. The framework could be extended to other energy-intensive industries. Member States will also establish a single digital permitting process to simplify and speed up manufacturing projects.
The Act seeks to raise manufacturing's share of EU GDP from 14.3% in 2024 to 20% by 2035, strengthening Europe's industrial base amid growing global competition and supply dependencies.
While maintaining the EU's openness to trade and investment, the proposal promotes reciprocity in public procurement. Countries offering EU firms comparable market access, including those party to the WTO Government Procurement Agreement or holding a free trade agreement or customs union with the EU, may benefit from equal treatment.
For major investments above €100 million in strategic sectors where a single third country controls more than 40% of global capacity, the IAA sets conditions to ensure high-quality jobs, innovation, technology transfer and at least 50% European employment. Overall, the Act aims to reinforce EU economic security and supply chain resilience.
More information is available online in the press release and the questions and answers. Only the published press material should be considered as final.