The European Commission is giving the German government a boost on one of its flagship industry policy programmes. The aim is for the processed‑industry sector to account for 20 % of the EU’s value added by 2035. The target is now being pushed back by five years, a shift attributed to pressure from German chancellor Friedrich Merz (CDU). The change is set out in the draft “Industrial Accelerator Act” reported by “Handelsblatt” on Friday.
The proposal also expands the definition of an EU‑manufacturer. Companies in partner countries will be treated as EU manufacturers if they have a trade agreement with the EU. This was a demand of the German government. It would allow EU firms to source components from countries such as Canada or India and still qualify for subsidies, bringing the benefits of the programme to partner nations.
During the EU competitiveness summit, the EU leaders discussed measures to better load European industry and equip it against aggressive competition from China and the United States. On 25 February the Commission is scheduled to formally present its proposal, a date that has already been postponed several times.
