Members of the European Parliament’s Committee on the Internal Market and Consumer Protection (IMCO), the Committee on Industry, Research and Energy (ITRE) and the Committee on International Trade (INTA) expressed differing views, on Tuesday 2 June, during a joint public session, on the concrete effects and implementation of the draft Industrial Accelerator Act (IAA) (see EUROPE 13821/1).
In the presence of the Executive Vice-President of the European Commission, Stéphane Séjourné, the members of these three committees responsible for the draft regulation did approve of the stated objectives of the proposal, namely to reindustrialise the EU and keep heavy industry on European soil while also helping it to decarbonise. While they also welcomed the effort to guard against Chinese ‘predation’ in key sectors of the green transition, such as solar power, some nevertheless considered the move too late. They also warned against the principle of European preference, which could turn allied trading countries against the EU, as Dutch EPP member Dirk Gotink said, also appearing to call on European decision-makers to abandon lost causes, such as solar panels, which the EU now hardly produces at all.
Other members, including the lead rapporteurs on the file, such as France’s Christophe Grudler (Renew Europe) for the ITRE Committee and Pierre Jouvet (S&D) for the IMCO Committee, for their part pointed to shortcomings that need to be corrected, first and foremost as regards the scope of European preference, which would cover far too many third countries.
According to the Renew Europe MEP, the text is very important because, “for the first time, the EU is embracing the simple principle that when European public money is mobilised, it must serve our industrialists”. However, “the current ‘Made in Europe’ covers more than 80 countries in addition to the 27; it is a ‘Made in Everywhere’; we need a more coherent framework and geographical consistency”, said the French MEP, who also regrets the excessive derogations provided for in the text and potential implementation difficulties for small and medium-sized enterprises, particularly as regards self-declaration and certification procedures on the European content of products.
For his S&D colleague, there is indeed a need for a “local content logic”, and the approach of using delegated acts to exclude third countries that would not meet the criteria of ‘Made in EU’ - for example, if they do not offer reciprocity in public procurement - could become “a real tinderbox”. There must also be genuine social conditionalities, as already exist in the public procurement rules, the French MEP added.
The IMCO Committee rapporteur, Anna Cavazzini (Greens/EFA, German) believes it is necessary to ensure that the IAA and demand “revive European companies” and that this legislation “helps European production”, without allowing the arrangements and investment aid to be circumvented.
However, other MEPs took the opposite view, such as Swedish EPP member Jörgen Warborn, who considered the Commission proposal and 'Made in Europe’ still too restrictive. “Some would like to exclude our WTO and free trade agreement partners from these arrangements, but that would also exclude Europeans from certain markets; it would reduce our opportunities for growth and jobs”, said the INTA Committee member, also doubting whether the Commission has a legal basis for excluding partners.
Other MEPs, such as Croatian EPP member Tomislav Sokol and Italian ECR member Maria Teresa Vivaldini, stressed simplification and the need to make life easier for businesses, including small and medium-sized enterprises. “We need to innovate, grow and not have to devote resources to certification or compliance”, said the Italian MEP, considering that the regulation will have achieved its objective when it enables real simplification, faster permits for building clean technology infrastructure and frees up room for investment.
In his replies to MEPs, the Executive Vice-President described as “fake news” the claim that the IAA would be available to 90 countries. Of the 90 third countries with trade agreements with the EU, 40 have an agreement on public procurement and around 20 operate on the basis of reciprocity. At this stage, the Commission therefore counts only around 20 so-called ‘trusted partner’ third countries, even though that proportion could rise, as the IAA is already having the effect of encouraging countries, for example Türkiye, to want to open their public procurement markets further to European companies.
The official also assured MEPs that the IAA and the new requirements will have only a very marginal impact on costs and administrative procedures. Stéphane Séjourné had to provide the same assurances, on Thursday 28 May, to the EU27 ministers responsible for competitiveness (see EUROPE 13876/1).
The responsible rapporteurs are due to submit their draft reports after the summer. (Original version in French by Solenn Paulic)