Germany and Spain clash over who gets into ‘Made in Europe’
Berlin wants a broad club for trade partners, while Madrid proposes a tiered system giving EU-made goods top billing.
Germany and Spain have clashed over the scope of the EU's "Made in Europe" initiative, which aims to favor European companies in public procurement. The European Commission proposed the Industrial Accelerator Act in March, seeking to channel EU spending on green technology, energy-intensive industries, and autos toward European companies. However, Germany and Spain are at odds on how to define the "Made in Europe" club.
Germany, the EU's export powerhouse, wants a broad "Made with Europe" group, admitting countries with free-trade or public procurement agreements with the EU, or those in a customs union with the bloc. This could potentially include up to 80 countries. Germany denies protectionism and discrimination and insists the EU must remain a reliable partner for free-trade partners.
On the other hand, France, the bloc's second-largest economy, advocates for a more restrictive approach, emphasizing that public money must support production in Europe. French Industry Minister Sébastien Martin stated that while Europe must remain open to trading partners, products must be produced in Europe to qualify for public support.
Spain has proposed a three-tier structure for the initiative, with EU-made products receiving the strongest preference. The first tier would include EU member countries, the second tier would consist of European Economic Area members and other "trusted" partners. A third tier would be reserved for countries with free-trade agreements, customs unions, or procurement agreements with the EU.
Ireland, the current chair of EU country talks, is working to mediate the differences among governments. They plan to present a new compromise by the middle of the month and hope to broker a deal in November. The divide also runs through party politics, with the German and Spanish wings of the center-right European People's Party split over the Industrial Accelerator Act.
The legislative timeline for the bill is slipping, making it increasingly unlikely that the EU will strike a deal this year. The argument over who gets into the "Made in Europe" club is being closely followed, particularly by the UK, which has concerns about potential exclusion from the initiative.
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