EU to lay out local content rules to strengthen manufacturing

The European Commission will unveil plans on Wednesday to boost the competitiveness of the EU's manufacturing sector during its drive to decarbonise and avoid reliance on cheap Chinese goods by setting local content requirements.



The intensely debated Industrial Accelerator Act (IAA), drafts of which were seen by Reuters, will set low-carbon and 'Made in Europe' requirements for public procurement of, or subsidies for, making aluminium, cement and steel, and technologies including wind turbines or electric vehicles.



The IAA aims to ensure that by 2035 manufacturing represents 20% of the European Union's national output, from 14% today.



Critics say the IAA will prompt trading partners to close their doors.



Proponents point out that rivals such as the United States, China, Brazil and India already have rules on local content in place and that similar requirements could help fill the EU's massive investment gap.