The act is the centerpiece of the Clean Industrial Deal unveiled a year ago, with the French commissioner championing a new, more interventionist European industrial policy to answer the threat posed by China’s dominance in advanced manufacturing and clean technologies.
Fast forward one year, and the IAA has been delayed three times and undergone repeated revisions. It has faced fierce pushback within the EU executive — especially from its powerful trade department — and from countries led by Germany that want less, not more, regulation. On the eve of the official announcement, the 100-page text underwent 44 more last-minute changes, according to one Commission official.
At its core is a “Made in Europe” provision that would seek to channel public money, spent chiefly through procurement deals, to EU-based companies. Yet it remains unclear whether third countries like the U.K. or Switzerland will secure the status of so-called trusted partners under the act.
“A lot of the pushback that has been happening really comes from DG TRADE,” said Sara Matthieu, a Belgian Greens MEP who sits on the European Parliament’s industry committee. “They don’t really like this kind of Made in Europe approach and are very afraid of repercussions that might have on trade policy.”
In averting another humiliating delay that would undermine a core plank of President Ursula von der Leyen’s second-term agenda, she and Séjourné run the risk of having the legislation ripped to shreds during consultations with the Council of the EU, which represents member countries, and European lawmakers.
A tale of two drafts
An earlier draft obtained by POLITICO in January put forward ambitious regulations that would mimic China’s forced joint-venture policies, restrict foreign investments, and enforce strict European preference requirements in public procurement.