The draft includes provisions on foreign investment, local content requirements, and the stockpiling of critical minerals.
The European Commission is set to present its Industrial Accelerator Act (IAA) on 28 January, according to the official legislative train. The new law is aimed at steering investment toward European manufacturers and strengthening the bloc’s industrial base amid global competition. Central to the proposal is a “Made in Europe” approach that would link EU funding and public procurement to domestic production. Media reports suggest Brussels is considering local content requirements of 60–80% when European money is used, echoing the United States’ “Buy American” policy. The draft also proposes stockpiling critical raw materials to bolster the EU’s preparedness for future supply crises.
A draft seen by Bloomberg News also indicates that foreign investments above €100 million could face conditions such as mandatory technology sharing, local hiring, and joint ventures with EU firms, measures intended to ensure strategic projects deliver benefits within Europe.
The push reflects growing concern over Europe’s industrial decline. Supporters argue that stronger preferences for European suppliers are needed to protect key sectors such as steel, aluminum, and clean technologies. However, the plan has met resistance from several member states. Finland, Sweden, and Ireland have cautioned that strict domestic quotas could distort the single market and raise prices, while Poland and the Netherlands are demanding a full impact assessment before any targets are set, Euronews reports.
The legislation would complement recent EU efforts to strengthen economic security and reduce strategic dependencies, including tougher screening of foreign direct investment and the new RESourceEU plan to secure critical raw materials, both announced in December. Several steps have also been taken in recent months toward establishing EU reserves of raw materials (we reported).
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