Brussels is recalibrating its industrial strategy, moving away from a strict “Made in Europe” approach towards a more flexible “Made with Europe” framework. This shift, revealed in recent discussions and policy adjustments, signals a pragmatic response to the complexities of global supply chains and the challenges of reshoring manufacturing to the European Union. The move comes as the EU grapples with increasing competition from China and seeks to bolster its own industrial base, aiming to increase its share of global manufacturing from 14.3% in 2024 to 20% by 2035.
The initial “Made in Europe” concept, championed by the European Commission, aimed to prioritize products with a significant proportion of European-origin components in public procurement contracts. This was intended to incentivize companies to manufacture within the EU, creating jobs and strengthening local supply chains. However, the strictness of the original proposal faced criticism from within the bloc, with concerns raised about its feasibility and potential to disrupt existing trade relationships. The evolving strategy acknowledges the intricate nature of modern production, where components often originate from multiple countries. The European Commission’s Industrial Accelerator Act, designed to address these concerns, is now focusing on streamlining permitting processes, tightening rules for foreign investment, and prioritizing products manufactured within the EU, but with a more nuanced approach to origin requirements.
The Evolution of the ‘Made in Europe’ Initiative
The shift from “Made in Europe” to “Made with Europe” reflects a growing understanding that complete self-sufficiency is unrealistic and potentially counterproductive. The initial proposal, as reported by VRT News, aimed to ensure that products benefiting from EU support were either fully or partially produced within the Union. Sectors like construction, automotive, cement, aluminum, solar panels, wind turbines, and electric vehicles were specifically targeted. However, a key concession was made regarding steel, with the requirement shifting to “low-carbon” steel rather than exclusively European-produced steel.
This adjustment acknowledges the reality that Europe may not currently have the capacity to meet its own steel demands with low-carbon production methods. The focus on carbon intensity aligns with the EU’s broader Green Deal objectives, incentivizing sustainable manufacturing practices regardless of geographic origin. The Industrial Accelerator Act, delayed by two months, is now centered on accelerating permitting procedures for new industrial projects and establishing stricter scrutiny of foreign investments to safeguard strategic assets. The goal is to create a more competitive environment for European businesses and reduce reliance on potentially unreliable supply chains.
Addressing Chinese Competition and Overproduction
The impetus behind the “Made in Europe” initiative – and now “Made with Europe” – is the growing challenge posed by Chinese overproduction and its impact on European industries. As reported by NOS News in August 2025, imports from China have surged, with some products being imported at over twenty times the previous year’s volume and at significantly lower prices. Specifically, the article highlights a 36-fold increase in imports of a certain group of chemical substances, accompanied by a 95% price reduction, and a nearly 8-fold increase in industrial robot imports with a 29% price decrease. This influx of cheaper Chinese goods is raising concerns about unfair competition and the potential for “dumping” – selling products below cost to gain market share.
The European Commission is closely monitoring these trends, but as of August 2025, it had not yet concluded that dumping was occurring. However, the data is undeniably concerning for European manufacturers. The situation is further complicated by China’s increasingly aggressive marketing tactics on social media, adding another layer of competition for European businesses. The “Made with Europe” strategy is intended to provide a level playing field by incentivizing domestic production and reducing the EU’s vulnerability to price fluctuations and supply chain disruptions originating in China.
The Automotive Sector: A Key Focus
The automotive industry is a particularly crucial focus of the Industrial Accelerator Act. As detailed by Fleet.be, the EU aims to link government support to a minimum percentage of European added value in vehicles, particularly electric vehicles (EVs). The proposed benchmark is that 70% of EV components (excluding the battery) should originate from within the EU. This measure is designed to encourage automakers to establish or expand production facilities within Europe and to source components from European suppliers.
However, the effectiveness of this approach is debated. EVs consist of thousands of parts sourced globally, and batteries, battery cells, semiconductors, and critical raw materials often come from Asia. Even if a vehicle is assembled in Europe, a significant portion of its value may still be attributed to non-European sources. Determining the “European content” of a vehicle is complex, with different methodologies potentially yielding vastly different results. Chinese automakers are already adapting to these challenges by building factories in Europe and forging partnerships with European companies, potentially mitigating the impact of the new regulations.
Challenges in Defining ‘European Content’
The complexities of defining “European content” are significant. Should it be based on the value of components, their weight, the location of assembly, or the origin of raw materials? Each method presents its own challenges and opportunities for strategic optimization. For example, a manufacturer could potentially increase the perceived European content of a vehicle by sourcing more expensive components from within the EU, even if those components represent a smaller percentage of the vehicle’s overall weight. This ambiguity could lead to loopholes and undermine the intended benefits of the policy.
the global nature of supply chains makes it difficult to completely isolate European content. Many components rely on raw materials sourced from outside the EU, and even European suppliers may depend on global networks for certain parts or processes. The “Made with Europe” framework attempts to address these challenges by focusing on incentivizing production within the EU while acknowledging the realities of global trade.
Green Industry Support and Funding
The push for a stronger European industrial base is also closely linked to the EU’s commitment to green technologies. As reported by Groen, the European Green party supports the industrial plans, advocating for the allocation of European funding to support domestic green industries. This includes investments in areas such as renewable energy, electric vehicle manufacturing, and sustainable materials. The aim is to create a virtuous cycle where European companies are at the forefront of green innovation, driving economic growth and reducing the EU’s carbon footprint.
The European Commission is expected to announce further details on funding mechanisms and specific investment priorities in the coming months. The success of the “Made with Europe” strategy will depend on the effective allocation of these funds and the ability to create a supportive regulatory environment for green industries. The focus on sustainability is not only environmentally beneficial but also strategically important, as it positions Europe as a leader in the rapidly growing global market for green technologies.
The European Commission is expected to provide a comprehensive update on the implementation of the Industrial Accelerator Act and the “Made with Europe” initiative at the European Council meeting scheduled for June 15, 2026. This meeting will be a crucial opportunity to assess the progress made and to address any remaining challenges. Readers are encouraged to share their thoughts and perspectives on this evolving industrial strategy in the comments section below.