The EU Commission’s long-awaited proposal of the Industrial Accelerator Act (IAA) is not a big breakthrough that will significantly strengthen Europe’s competitiveness.
That is the view of Thilo Brodtmann, executive director at VDMA, the German and European mechanical and plant engineering association.
“The focus on ‘local content’ distracts from Europe’s real challenges – such as high administrative costs, a weakened internal market, and Europe’s lack of technological leadership,” Brodtmann comments on the IAA proposal, which is intended to protect strategic manufacturing in Europe.
“Local content rules should be designed with great restraint. A ‘Buy European’ approach is justified if the EU’s security interests are specifically at risk and there is no other way to reduce or prevent dependence on strategically relevant technologies and critical raw materials as a precautionary measure.”
“It is good that trade partners are not to be excluded by ‘local content’ regulations. This must be maintained in the further political process in order to support the EU’s important efforts for free trade.”
“On a positive note, the use of green steel remains limited to a restricted range of applications. However, the creation of lead markets must not place an additional burden on the machinery and equipment manufacturing technologies that are essential for achieving the EU’s climate targets.”
