Germany and Spain clash over Made in Europe rules — Politico Europe
In Brussels, Germany and Spain presented opposing approaches to Made in Europe rules within the EU bill aimed at accelerating industrial development — the Industrial Accelerator Act. Berlin insists on a broader range of trade partners, while Madrid proposes a priority system in which goods produced in the European Union would receive the highest status, Politico Europe reports.
Different approaches to preferences
The European Commission presented the Industrial Accelerator Act in March. The document provides that public procurement and support programs in EU countries for green technologies, energy-intensive industries and the automotive sector should be directed more toward companies from the European Union. The goal is to strengthen their competitiveness against exporters from China.
Germany supports the Made with Europe definition, which generally corresponds to the European Commission's initial proposal. It provides for the inclusion of countries that have free trade or public procurement agreements with the EU, as well as countries in a customs union with the European Union. This approach could potentially cover up to 80 countries. Berlin also proposes a mechanism for countries that grant EU companies reciprocal access to their public procurement.
At the same time, no other EU country has yet joined the German document. France, like Spain, advocates a stricter approach. French Industry Minister Sébastien Martin said that products may contain part of their added value from other countries, but their production must take place in Europe in order to receive public funding.
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Spain's three-tier model
Spain has proposed a three-tier system of European preferences. The first tier would include the 27 EU member states, whose products would receive the highest priority. The second tier would cover members of the European Economic Area and other “reliable” partners. The third tier is proposed for countries that have free trade agreements, a customs union or procurement agreements with the EU.
Ireland, which holds the presidency of the Council of the EU until the end of the year, is trying to bring the sides' positions closer together. On October 7, Dublin plans to convene a meeting of deputy ambassadors and, by mid-October, present a new compromise version. Participants hope to reach an agreement in November, but the European Commission's goal of agreeing the law by the end of the year increasingly appears unrealistic.
After the Council of the EU and the European Parliament determine their positions, negotiations between the institutions may begin. In the European Parliament, discussion of the draft report is expected on September 28, and lawmakers will be able to submit amendments until October 7.
