The IAA is the EU’s first horizontal industrial policy instrument designed to create lead markets for low‑carbon products, accelerate permitting for strategic projects, and introduce new rules for foreign direct investment in key sectors. IndustriAll Europe recognises the importance of this initiative at a time of declining industrial capacity, global overcapacity, and mounting geopolitical uncertainty.

Our position paper warns that the proposal risks being undermined by an overly broad definition of “Union origin”, which treats products from countries with EU free trade agreements as equivalent to European production. This fails to reflect real European value creation and is a missed opportunity to promote and develop European manufacturing supply chains. IndustriAll Europe calls for a clearer and more effective “Made in Europe” framework that prevents social and environmental dumping and supports genuine European manufacturing.

A promising framework weakened by exemptions and lack of ambitious local content shares

IndustriAll Europe criticises far‑reaching exemptions in provisions such as public procurement, which includes exemptions based on price differences, or a very high threshold for FDIs and exemptions for investments covered by free trade or economic partnership agreements, rules that risk making critical IAA provisions ineffective.

Public procurement must drive industrial renewal

We call for higher and meaningful ambitions on local/low‑carbon content for strategic sectors such as aluminium, automotive, and cement, while we insist that clean steel must be made in Europe. Public procurement must become a genuine lever for European industrial renewal, not a symbolic gesture.

Social conditionalities must apply across the board

While the proposal introduces binding social conditions for foreign direct investment, including a requirement that at least 50% of the workforce be EU workers, these obligations do not apply to companies from third countries with whom the EU has an FTA or to European companies benefiting from public procurement, state aid, or accelerated permitting. IndustriAll Europe insists that social conditionalities must be mainstreamed through the IAA’s provisions to ensure it benefits workers. All public support must be tied to respect for collective bargaining, quality employment, training, and worker participation.

Our message is clear: the IAA is a step in the right direction, but Europe must raise its ambition if it wants to rebuild industrial capacity, secure strategic autonomy, and create good industrial jobs.

Adopted position: EN FR DE