The European Commission has launched proposals for the reindustrialization of Europe, aiming to protect strategic sectors and reduce dependence on China.

The European Commission presented on Wednesday initiatives under the 'Made in Europe' program, aimed at supporting the reindustrialization of the continent and improving competitiveness against China. The 'industrial acceleration' law, proposed by Vice President Stéphane Séjourné, aims to maintain and decarbonize key sectors, such as the automotive industry, which faces economic challenges and rising energy costs. The goal is for industry to represent 20% of the European GDP by 2035, up from 14% currently, by introducing a 'European preference' that requires strategic companies to use local components when benefiting from public funds. The French Ministry of Economy expressed concerns that the proposals do not sufficiently protect national interests, calling for enhanced advantages for European producers. Negotiations among member states have been difficult, but the urgency of action has led to broader alignment, including from Germany. Targeted sectors include automobiles, decarbonized technologies, and heavy industries, with strict requirements for the use of local materials. However, steelmakers expressed disappointment that the use of European oil is not mandated. The bill will require approval from member states and the European Parliament and also aims at obligations for foreign investments in key sectors, especially considering competition with China.