Industrial Acceleration Act

The Industrial Acceleration Act (IAA) was published on 4 March 2026. The European Commission aims to increase the demand for low-carbon, European-made technologies and products, and expects the IAA to boost manufacturing, grow businesses and create jobs in the EU.

The IAA introduces targeted and proportionate ‘Made in EU' and/or low-carbon requirements for public procurement and public support schemes. These will apply to selected strategic sectors, notably in steel, cement, aluminium, cars, and net-zero technologies.

The reactions to the IAA within the EU are divided in opinions. For example, Ulf Kristersson, Swedish prime minister, expressed scepticism about Buy European. He stated: "We need to be able to compete because of quality and because of innovation, not because we try to protect the European markets". Markus Ferber, a member of the EU Parliament, also criticised the act as a misguided and protectionist approach. He said Europe's industry is burdened by high energy costs, excessive regulation and weak innovation momentum. "Europe's strength lies in technological excellence and openness to markets, not in isolation".

External trading partners, such as the China Chamber of Commerce, also expressed disappointment in the Commission’s goal to reshape the market access for foreign investment and forced technological transfer. The German Chamber of Commerce and Industry has stated that although the IAA is billed as a business-simplification drive, "there is still no tangible relief for the broader economy".

In conclusion, while the Act seeks to accelerate green industrial growth and strategic autonomy, its effectiveness and legitimacy remain contested due to concerns over protectionism, regulatory burden and limited immediate economic relief.