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France-Germany dispute over EU industrial policy expands

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What changed

2026-09-24 22:45 UTC → 2026-09-28 10:42 UTC · added ~~removed~~

France-Germany ~~strategic and~~ dispute over EU industrial policy ~~dispute~~ expands

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 ~~more detailed~~ tiered ~~system. This compromise model would feature~~ system featuring the 27 EU members in a central tier, followed by the European Economic Area and trusted partners, and finally ~~include~~ countries with free trade agreements or those producing critical components that the EU cannot currently manufacture in sufficient quantities. ~~The final regulatory framework requires approval from both the European Parliament and EU member states.~~

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