The European Union is weighing “Buy European” rules that would give priority to Europe-made products in public subsidies and publicly funded contracts. The proposal is being prepared by the European Commission and promoted by industry commissioner Stéphane Séjourné.
Séjourné pointed to similar approaches in other major economies. “China has Made in China, the US has Buy American, Canada has Buy Canadian — it is time for Europe to defend itself with a comparable system,” he said, as quoted by the Financial Times and reported by Mediafax.
Electric vehicles among the first targets
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In the automotive sector, the focus is on electric vehicles. One proposal would require EVs purchased with public subsidies to meet up to a 70% local content threshold, meaning most components would need to be produced within the EU. The aim is to support European manufacturing and curb imports, particularly from China.
The plan faces significant pushback inside the bloc. Member states and business groups cite a lack of detail on which industries would be covered, how strict the requirements would be, and when they would apply. European carmakers, often seen as the main beneficiaries, have not formally endorsed the initiative and are seeking clearer guidance.
In a letter to companies, the EU industry commissioner said firms receiving public support could be required to manufacture locally: “The company benefiting from financial support will need to produce a substantial part of its output within Europe.”
Discussions also include applying the rules to foreign investments, requiring non-EU companies that receive public support to expand production in Europe and work more closely with local suppliers.
Analysts warn that strict local-content rules could drive up prices. “A 70% threshold would make European products so expensive compared with Chinese alternatives that additional tariff protection would be needed,” the report notes.
EU leaders are set to discuss the proposal at an informal summit on Thursday at Alden Biesen Castle in Belgium. The European Commission is expected to present a legislative proposal later this month in Brussels. The plan would extend beyond electric vehicles to multiple strategic sectors, from energy and green technologies to industrial manufacturing.
Photo: EUMETSAT
