Brussels proposes prioritizing "Made in Europe" over the US and China

BrusselsThe European Commission's protectionist response to Donald Trump's constant attacks on the European Union and the growing threat posed by China to the bloc's competitiveness. Brussels proposed new regulations on Wednesday to prioritize European products over those manufactured outside the EU in public tenders. "This represents a change in doctrine, a proposal that was unthinkable just a few months ago," stated Stéphane Séjourné, the European Commissioner for the Internal Market, at a press conference.

The European Commission believes that while the EU market remains open to foreign powers, European companies face far more obstacles to operating abroad, for example in China and the United States. Brussels considers this an injustice that must be rectified. Therefore, the Commission also intends to strengthen the products "Made in Europeand that they pollute less in the private sector, especially in fields they consider critical and of particular relevance to the European economy and competitiveness, such as energy, automobiles, and renewables. This percentage is expected to increase over the years, but could also be reduced in exceptional cases and when necessary.

Brussels' intention with the industrial acceleration law is to increase the power of European industry and generate quality, well-paid jobs. Specifically, the European Commissioner for the Internal Market has set a "clear objective": to ensure that "the industrial sector once again accounts for 20% of the European Union's gross domestic product (GDP) by 2035." Currently, it stands at 14%.

The battle between France and Germany

The measure proposed by the European Commission has stirred up considerable controversy, and in fact, its presentation has been postponed three times due to the division it generates among member states, which will now have to negotiate and approve the regulations. On one side, France and Spain—among other states with a more protectionist tradition—advocated for a more ambitious measure that would further restrict public tenders for products manufactured within the European Union. Conversely, another group of European partners, such as Germany, Italy, and the Netherlands—exporting powerhouses and generally more in favor of free trade—opted to maintain as few restrictions as possible, both for fear of reprisals from other powers and to prevent price increases in their companies' value chains.

Beyond the percentages of European products that will have to be met to receive the "Made in EuropeThe designation of which third countries count as European is also expected to be a contentious point in the negotiations. Currently, Brussels proposes including Norway, Iceland, and Liechtenstein, and is open to adding countries deemed "trustworthy."