# France-Germany dispute over EU industrial policy expands

> Live situation record from CLSTR: https://clstr.news/situations/france-germany-strategic-and-industrial-policy-dispute
> Updated: 2026-09-28T09:28:13.000Z. Sources: 27. Developments: 3.

France and Germany remain divided over the implementation of the European Commission’s Industrial Accelerator Act, which seeks to protect sectors such as automobiles, green technologies, cement, and aluminum from international competition, specifically from China. The dispute centers on the criteria for linking public subsidies and government contracts to domestic production standards.

France continues to advocate for a strict ‘Made in Europe’ definition restricted to the 27 EU member states. French Industry Minister Sébastien Martin has maintained that ‘European taxpayer money should benefit European workers and factories.’

Germany persists in its push for a ‘Made with Europe’ approach. German Economic Minister Katherina Reiche argues for the inclusion of key trading partners, such as Norway, Switzerland, and Canada, provided they offer reciprocal market access. Germany further suggests that products from countries with free trade agreements or customs unions with the EU should be treated as equivalent.

This disagreement has expanded to include the role of the United Kingdom. Germany supports including partners with existing free-trade or customs agreements, such as the UK, to preserve vital automotive value chains. Conversely, France argues that including the UK would weaken European industrial sovereignty. Industry experts, including Mike Hawes of the SMMT, have warned that excluding the UK could disrupt supply chains and increase consumer prices, noting that UK automotive exports to the EU totaled 20 billion euros in 2024.

To bridge this gap, Spain has proposed a tiered system featuring the 27 EU members in a central tier, followed by the European Economic Area and trusted partners, and finally countries with free trade agreements or those producing critical components that the EU cannot currently manufacture in sufficient quantities.

## Claims

- French Industry Minister Sébastien Martin argues that 'Made in Europe' should strictly refer to the 27 EU member states. (disputed by 15 sources)
- Germany suggests including partners like Norway, Switzerland, and Canada in the definition of European production. (disputed by 12 sources)
- The European Commission proposes linking public subsidies and contracts in critical sectors to European production. (corroborated by 16 sources)
- The proposed Industrial Accelerator Act targets sectors including automobiles, heat pumps, photovoltaics, cement, and aluminum. (corroborated by 16 sources)
- German Economic Minister Katherina Reiche advocates for a 'Made with Europe' principle that includes key trading partners. (corroborated by 12 sources)
- Spain has proposed a compromise position between the strict French approach and the open German model. (corroborated by 6 sources)

## Timeline

### 2026-09-28: France and Germany clash over UK role in EU industrial policy

France and Germany are divided over the EU's Industrial Accelerator Act, specifically whether to include the UK in 'European preference' policies affecting the 20 billion euro automotive trade.

5 sources. https://clstr.news/cluster/france-and-germany-clash-over-uk-role-in-eu-industrial-policy

### 2026-09-24: EU nations clash over 'Made in Europe' industrial funding rules

EU nations are clashing over the 'Made in Europe' definition for the Industrial Accelerator Act. France seeks strict limits to the 27 member states, while Germany advocates for including key trade partners.

20 sources. https://clstr.news/cluster/germany-and-france-clash-over-eu-industrial-subsidy-rules

### 2026-09-14: France and Germany clash over European defense strategy

France and Germany are divided over European defense strategy, debating whether to prioritize domestic EU industry or maintain cooperation with NATO and U.S. defense partners.

2 sources. https://clstr.news/cluster/france-and-germany-clash-over-european-defense-strategy

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Cite as: France-Germany dispute over EU industrial policy expands. CLSTR, https://clstr.news/situations/france-germany-strategic-and-industrial-policy-dispute