France and Germany clash over UK role in EU industrial policy

The European Union is currently debating the Industrial Accelerator Act, a policy framework that has exposed a significant divide between France and Germany regarding the role of the United Kingdom in European industrial strategy.

France is advocating for a strict 'European preference' model. French Industry Minister Sébastien Martin stated that 'European public money must go to European workers and factories,' arguing that including the UK would weaken the continent's industrial sovereignty and its ability to compete with China.

In contrast, Germany supports a more inclusive 'Made with Europe' approach. German Economy Minister Katherina Reiche argues for including partners with existing free-trade or customs agreements, such as the UK, to preserve vital automotive value chains.

The debate carries significant economic stakes. In 2024, UK automotive exports to the EU totaled 20 billion euros. Industry experts, including Mike Hawes of the SMMT, warn that excluding the UK from European industrial benefits could disrupt supply chains, reduce competitiveness, and lead to higher prices for consumers.