On Tuesday 23 June, the Cyprus Presidency of the Council of the EU proposed a first partial compromise on the Industrial Accelerator Act, covering at this stage Chapters 1, 2, 5 and 6, while still leaving aside the most sensitive chapters relating to the rules on ‘Made in EU’ and European preference in public procurement, public aid or in the area of foreign direct investment screening, namely Chapters 3 and 5.
The recitals relating to these last two chapters are not covered by this first text either.
In this first text, which will be discussed in the working party on 29 June, the target of raising the share of European industry in European GDP to 20% by 2035 (from 14% today) has already been deleted. Several Member States had considered this target very vague in their initial comments (see EUROPE 13838/8).
The Presidency is therefore proposing wording without a quantified target. “This Regulation contributes to the shared objective of the Union and Member States of increasing the manufacturing sector’s share of the Union’s GDP by 2035”, the new wording states.
The Cypriot text also clarifies the definition of industrial acceleration areas. “A harmonised framework for the designation of industrial manufacturing acceleration areas should ensure that project promoters benefit from comparable enabling conditions irrespective of the Member State in which they invest, thereby strengthening the internal market as a driver of industrial growth. The designation of at least one industrial manufacturing acceleration area in every Member State is intended to stimulate and concentrate manufacturing activity across the Union, raising the share of industrial manufacturing in the Union economy while preserving a level playing field between Member States”, the Presidency explains.
Such areas should be limited in geographical scope in order to foster industrial symbiosis. When designating the areas, Member States should, in cooperation with regional authorities where appropriate, take into account industrial production (in particular for certain strategic sectors) and their regions’ general level of development, with a focus on the less developed regions and those in transition.
Outside Natura 2000 areas. And to facilitate the identification of manufacturing areas, Member States should consider prioritising locations outside Natura 2000 sites and outside areas designated under national protection schemes for nature and biodiversity conservation, as well as other areas identified on the basis of sensitivity maps and outside protected areas as referred to in Article 6 of Directive 2000/60/EC.
Among the objectives assigned to the text, the IAA regulation “aims to improve the functioning of the internal market and ensure a level playing field”, the Presidency adds, also specifying that it must contribute to the attractiveness of investment conditions in the Union.
The first text also clarifies the methods for identifying industrial acceleration areas and thus asks Member States to designate an industrial manufacturing acceleration area on their territory within 24 months following the entry into force of this Regulation (as opposed to 12 initially).
Particular attention must also be paid to projects likely to have cross-border spillover effects beyond the Member State concerned.
Link to the partial compromise: https://aeur.eu/f/mhz (Original version in French by Solenn Paulic)