The proposal follows recommendations set out in the report led by former European Central Bank President Mario Draghi on the future competitiveness of the European economy. The IAA introduces targeted requirements for public procurement and public funding programmes that prioritise products manufactured in the EU or with low-carbon production standards. These criteria are initially intended for selected strategic sectors, including steel, cement, aluminium, the automotive industry and net-zero technologies. The framework may later be extended to additional energy-intensive sectors such as the chemical industry.
According to the Commission, the measures are intended to strengthen production capacity within the EU and increase market demand for low-carbon technologies and products manufactured in Europe. The proposal also requires Member States to establish a digital one-stop permitting procedure aimed at accelerating approval processes for industrial manufacturing projects.
The draft regulation addresses foreign direct investment in strategic industrial sectors where a single third country controls more than 40 percent of global manufacturing capacity. Investments exceeding €100 million would be subject to specific conditions. These include requirements related to employment, innovation, technology transfer and compliance with EU content rules. The proposal also stipulates that at least half of the workforce involved in such projects must be employed within the European Union.
The Commission states that these provisions are intended to strengthen the economic security of the EU and increase the resilience of industrial supply chains. At the same time, the regulation maintains openness to international investment while establishing criteria intended to ensure that investments generate industrial value within the European market.
The Industrial Accelerator Act is also designed to use the regulatory framework of the EU Single Market to support demand for low-carbon industrial products and technologies. The proposal focuses on strengthening lead markets for products manufactured in the EU, ensuring that foreign direct investment contributes to European industrial development, simplifying permitting procedures for industrial facilities and supporting the development of lower-emission manufacturing processes.
The draft regulation will now be examined by the European Parliament and the Council of the European Union as part of the EU legislative process. Adoption by both institutions is required before the regulation can enter into force.
