After delaying its presentation several times, the European Commission finally unveiled the contents of the Industrial Acceleration Act (IAA) on Wednesday, March 4. This piece of legislation aims to empower the European Union (EU) to regain initiative as the 27-member union continues to fall behind the United States and China economically, and as both Washington and Beijing increasingly leverage Europe’s dependencies. The objective is for industry to account for 20% of the EU’s gross domestic product by 2035 (up from 14% today), a level comparable to that of the early 1990s. “Without a strong industrial base, there can be no European social model, no climate transition, no strategic autonomy,” said Stéphane Séjourné, the vice president of the Commission.

However, the IAA has triggered fierce debate in Brussels because it introduces a European preference in the awarding of public contracts and in the deployment of all forms of state aid, while also strengthening the control of foreign investments. Under pressure from the business community and from non-EU countries such as the United States, Japan, Canada and the United Kingdom, all seeking to defend their interests, the debate took place within the Commission and between the member states. These discussions are set to continue, as the 27 member states and the European Parliament must now find a compromise.

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