While the office of Stéphane Séjourné, the European Commission’s executive vice-president responsible for Prosperity and Industrial Strategy, again insisted on Tuesday 17 February that the working hypothesis was still to present the Industrial Accelerator Act on 26 February, rumours of a possible further postponement continue to surround this file.
Other sources suggest a presentation date of early March, due to certain differences of opinion on the content of this regulation, which is supposed to establish the very first rules for ‘Made in Europe’. On 16 February, Politico reported that nine departments of the Commission had issued a negative opinion.
“The Industrial Accelerator Act, and more generally the introduction of European preference into our legal corpus, implies a major change in the EU’s economic doctrine. It is therefore not surprising that it will take time and effort to arrive at a relevant common version”, replied Stéphane Séjourné. “I am confident that we will succeed, taking account of the different opinions while maintaining the high level of ambition of the text”.
While a previous draft of the regulation specified which third countries could also be considered as equivalent to EU companies, a new draft seen by Agence Europe has further specified the EU origin requirements for vehicles eligible for public subsidies.
More specifically, these are draft annexes detailing the strategic sectors concerned, and also highlighting ‘Made in Europe’ in the field of electric vehicles.
According to this provisional annex, the new rules would apply to vehicles assembled within the EU and whose “components – excluding the vehicle battery – originating in the EU”, represent at least 70%. This applies to 100% electric vehicles, hybrid electric vehicles with recharging or fuel cell vehicles purchased, leased or acquired under public procurement.
The provisional annex therefore also specifies the strategic sectors for which public support will be granted to producers established in the Union.
This would involve: - manufacture of paper and paper products; - manufacture of coke and refined petroleum products; - manufacture of chemicals and chemical products; - manufacture of rubber and plastic products; - manufacture of other non-metallic minerals; - automotive industry: manufacture of motor vehicles, trailers and semi-trailers; - net-zero technologies.
Tech sectors. The sectors targeted would also include advanced semiconductor and artificial intelligence technologies, quantum technologies, biotechnologies, advanced connectivity, navigation and digital technologies, space and propulsion technologies, robotics and advanced materials, and manufacturing and recycling technologies.
Another appendix sets out minimum thresholds for European and/or low-carbon content in public procurement contracts and public aid for certain products: at least 25% of the total volume of steel used in the construction of infrastructure and in transport must be low-carbon.
For aluminium “and any product whose performance depends mainly on aluminium, intended for use in buildings, infrastructure and transport”, at least 25% of the total volume of aluminium used must be low-carbon and of EU origin, the text adds.
Complexity. When questioned by Agence Europe, some industry sources were concerned that the implementation of these ‘restrictions’ would be extremely complex, would increase bureaucracy and would not offer any competitive advantage, particularly if all the EU’s trading partners were included in the definition of content equivalent to that of the EU.
The European automotive sector is also divided on the subject, questioning above all the cost compensation arrangements and calling for new CO2 bonuses for all ‘Made in Europe’ electric vehicles.
Link to the document: https://aeur.eu/f/krh (Original version in French by Solenn Paulic with Anne Damiani)