France is leading a push to exclude the UK from the EU's Made in Europe policy, a move that could result in British companies losing out in the race to supply European countries with low-carbon technologies and electric cars. The policy, still under negotiation, aims to protect European companies from intense and "unfair" state-subsidised competition from China.
What is the Made in Europe Policy?
The Made in Europe policy is a set of proposed EU measures designed to boost domestic manufacturing and reduce reliance on foreign suppliers, particularly in strategic sectors like renewable energy and electric vehicles. One key proposal is the Industrial Accelerator Act, which would require authorities spending public money—awarding subsidies or public contracts—to favour European products in sectors such as renewable technologies and electric cars.
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France's Push for a Narrow Definition
At a meeting of EU industry ministers in Brussels on Thursday, France pushed for a narrow definition of "Made in Europe," starting with the EU27. "European taxpayers' money should support [European] workers and European factories," the French industry minister, Sébastien Martin, told reporters. When asked about the UK, he said: "The United..." (indicating France's reluctance to include non-EU countries).
Implications for UK Companies
British companies risk being collateral damage in this policy shift. The UK government fears that if excluded, UK firms could lose access to lucrative EU public contracts and subsidies, putting them at a disadvantage against EU-based competitors. Resolving this issue has become a top priority for Andy Burnham, who met with European Commission president Ursula von der Leyen on the sidelines of the UN general assembly earlier this week.
Key Takeaways
- France is advocating for a narrow definition of "Made in Europe" that excludes the UK.
- The Industrial Accelerator Act could require EU public funds to favour European products.
- UK companies in low-carbon tech and electric cars may lose out on EU contracts.
- The UK government is actively lobbying to be included in the policy.
Comparison: EU vs. UK Position
| Aspect | EU Position | UK Position |
|---|---|---|
| Definition of "Made in Europe" | Narrow (EU27 only) per France | Broad (include UK) |
| Public Procurement | Favour European products | Seek equal treatment |
| Impact on UK Firms | Potential exclusion | Risk of losing contracts |
FAQ
What is the EU's Made in Europe policy?
The Made in Europe policy is a proposed set of EU measures to protect European companies from unfair foreign competition by favouring European products in public spending and contracts, particularly in low-carbon technologies and electric vehicles.
Why does France want to exclude the UK?
France argues that European taxpayers' money should support European workers and factories, and therefore the definition of "Made in Europe" should be limited to EU member states.
How could UK companies be affected?
If excluded, UK companies may lose access to EU public contracts and subsidies, putting them at a competitive disadvantage in sectors like renewable energy and electric cars.
The debate over the Made in Europe policy is ongoing, with intense discussions expected in the coming months. UK businesses and government officials will be watching closely to see if they can secure a more inclusive definition.
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