EU Unveils Industrial Accelerator Act: What It Means for the Bloc’s Manufacturing Sector and Economy

The Industrial Accelerator Act Draft Law

According to Главком: The European Union has introduced a legislative proposal called the Industrial Accelerator Act, designed to reshape its industrial policy and boost the bloc’s economic self-reliance. This document outlines a series of measures aimed at supporting domestic production, localizing supply chains, and simplifying the launch of industrial projects. Final approval is not expected before 2027, following negotiations between the European Parliament and the Council of the EU.

Key Provisions of the Proposal

According to available data, the share of industry in the EU’s gross domestic product has dropped from 17.4% in 2000 to 14.3% in 2024. A central tool in the new proposal is public procurement. The law stipulates that a portion of products used in infrastructure and industrial projects-such as:

• steel
• aluminum
• concrete
• other materials

must be manufactured within the EU. This is intended to strengthen internal production capacity and reduce reliance on outside suppliers.

Additionally, the Industrial Accelerator Act calls for the creation of special industrial zones for energy-intensive industries, the automotive sector, and clean technologies. It also imposes oversight on investments in the production of batteries, electric vehicles, solar panels, and critical raw materials. At the same time, trade tensions between the EU and China are intensifying over the 'Made in Europe' initiative, which will also shape the implementation of new industrial strategies within the bloc.

The Industrial Accelerator Act reflects the European Union’s efforts to enhance competitiveness and secure economic independence in the face of global challenges.

Adopting this legislation could mark a significant step toward reviving the EU’s industrial potential, especially given the declining share of industry in GDP. Amid growing pressure from international competitors like China, these new initiatives may help the EU maintain its global standing and influence the development of new trade strategies within the bloc.

As the EU seeks to enhance its industrial framework through the Industrial Accelerator Act, it is also implementing complementary initiatives like the new Competitiveness Compass. This program aims to save businesses €15 billion annually, further illustrating the bloc's commitment to strengthening its economic landscape and supporting local industries amidst global challenges.