France and Germany Seek ‘Made in Europe’ Deal to Boost Industry
641 Min Read
France and Germany are working on a major industrial agreement aimed at strengthening European manufacturing and reviving the bloc’s struggling automotive sector.
The proposed deal would see Berlin support stricter “Made in Europe” rules in the EU’s Industrial Accelerator Act, giving European companies greater preference in public procurement and subsidy programmes.
France wants to limit access to these advantages mainly to EU-based producers, arguing that European industry must be protected from unfair global competition. Germany has previously favoured a broader approach that would include trusted partners such as the UK and Canada.
In return, Paris could support greater flexibility on the EU’s planned 2035 phaseout of new combustion-engine cars, a key demand from Germany’s car industry, which is facing major challenges.
The agreement is being negotiated as Europe seeks to strengthen its industrial base, reduce reliance on foreign supply chains and compete more effectively with global rivals, particularly China. The two countries hope to finalise a deal before upcoming EU industry and leaders’ meetings later this year.
