The European Union’s push to strengthen its industrial base through the proposed Industrial Accelerator Act (IAA), introduced in March, has sparked divergent views among member states over how to define ‘Europe’ in public procurement requirements. While the Commission seeks to prioritize products with a ‘Made in Europe’ label, interpretations of eligibility—including whether non-EU partners like Switzerland qualify—have become a sticking point.
Germany, led by Wirtschaftsministerin Katherina Reiche, advocates for a broader approach, framing ‘Made with Europe’ as encompassing not just EU states but also Norway, the Swiss Confederation, and other key trade partners such as Canada. Denmark, Czechia, and Luxembourg have signaled support for this stance. In contrast, France’s Industrieminister Sébastien Martin insists ‘Europe’ should strictly refer to the 27 EU member states, arguing that public funds should exclusively support domestic industries. When asked about Switzerland’s potential inclusion, Martin emphasized that the EU’s 27-state consensus must prevail, noting that third-country access remains contingent on unanimous agreement.
The IAA targets sectors deemed critical to EU resilience, including net-zero technologies (e.g., photovoltaics, wind turbines, batteries), automotive manufacturing, steel, cement, and chemicals. For these sectors, the act mandates varying levels of domestic content, with some components requiring explicit ‘Made in Europe’ labeling. Poland, Romania, and Spain have proposed alternative tiered frameworks: the first tier includes the 27 EU states, the second expands to Economic Area (EEA) members and trusted partners like Switzerland, and a third tier could incorporate countries with free-trade agreements with the EU.
Swiss officials, including the Staatssekretärin für Wirtschaft (Seco) Helene Budliger Artieda, have actively lobbied to prevent discriminatory measures. Seco representatives have met with EU institutions and ministers to advocate for equal treatment for Swiss firms, citing concerns that the act could impose unnecessary bureaucratic burdens on foreign companies. Budliger Artieda recently attended a Brussels meeting and is set to travel to Paris in September to discuss EU competitiveness measures alongside French Minister Martin.
The EU’s 27-member state Council must reach a consensus by December 3, when Ireland holds the rotating presidency. Ireland’s Peter Burke has stressed the urgency of agreement, noting that negotiations between the Council and the European Parliament will follow. Meanwhile, the UK, which left the EU in 2020, has also expressed solidarity with Switzerland, with Prime Minister Andy Burnham urging EU leaders to ensure third-country access in the IAA’s framework.
Critics warn that overly rigid definitions could stifle innovation, while proponents argue that stricter domestic sourcing is essential for energy independence and supply chain resilience. The outcome will shape how the EU balances geopolitical competition with market access for non-EU partners.
