EU delays 'Made in Europe' plan after disagreements over scope

The European Commission announced on Monday that it had 'delayed announcement of a new policy to prioritise industrial products and parts made in Europe by a week due to disagreements over the scope of the program.

Thursday was the date set for the announcement of these measures, which would establish minimum thresholds in order to use locally-made parts in projects involving public funds. These include strategic sectors such as batteries, solar and renewable energy, and nuclear power.

A spokesperson from the office of Commission Executive Vice President Stephane Séjourne stated that "Following discussions, the presentation of the IAA has now been scheduled for the 4th March", referring to policies which would be drafted?under the Industrial Accelerator Act.

France, among others, has been promoting the idea of "Made in Europe" regulations. They argue that European industries must be protected from cheaper imports, such as those coming from China, which have less stringent environmental regulations.

Others, such as Sweden and the Czech Republic warn that the "buy local" requirement could discourage?investment and raise the prices of government tenders. It may also hurt the EU's global competitiveness.

Other industries, including carmakers, have also called for protection to be extended to other countries in their supply chain, such as Britain and Turkey.

The Clean Industrial Deal was adopted by the Commission in February of last year, to increase the EU's global competitiveness with U.S. and Chinese competitors.

The spokesperson for the Commission said: "We hope that this extra?week of discussions within the Commission will make the proposal more solid." Reporting by Alexander Chituc, Julia Payne and Andrew Heavens

(source: Reuters)