The European Commission seeks to strengthen industrial sovereignty by introducing localization of production (“Made in the EU”) requirements in key sectors of the EU economy through legislative requirements. This is aimed at reducing dependence on external suppliers, supporting local producers and accelerating the transition to environmentally friendly technologies.
This is reported by euobserver.com with reference to sources in Brussels. Measures, in particular, due to the fact that the European auto industry has asked for relaxation, specifies DW. Under pressure from the automotive industry, the European Commission abandoned plans to completely ban the sale of new cars with internal combustion engines in the EU by 2035.
What will be included in the “Made in Europe” program
The EC has unveiled a sweeping package of measures to support the European automotive industry, which proposes to relax climate requirements for carmakers and abandon a complete ban on the sale of new cars with internal combustion engines (ICE) by 2035.
Instead of requiring carbon dioxide (CO₂) emissions to be brought to zero, the plan calls for a reduction in emissions, according to the EC’s initiative released in Strasbourg on December 16.
It was originally planned that from 2035, only cars that do not emit CO₂ would be allowed to be registered in the EU. In fact, this means a complete transition to electric cars. Now the European Commission has proposed to reduce the required emission reduction from 100% to 90% compared to 2021.
Manufacturers will be able to compensate for the remaining 10% by using so-called “green” (low-carbon) steel, synthetic fuels, and biofuels from non-food raw materials such as agricultural waste or used cooking oil. This will keep hybrids and even some internal combustion engine models on the market.
Brussels’ new rules under the Made in Europe program (formalized through the Industrial Accelerator Act) are expected to be published at the end of February.
Key elements of the new rules
In order to receive state support and participate in public procurement, electric cars must consist of 70% (excluding the battery) of components made in the EU.
The share of European components in battery and solar panel production must gradually increase over three years.
When allocating government contracts (the total volume of which in the EU is about 2 trillion euros), preference will be given to products labeled “Made in Europe”.
Simplifications for business and for following environmental standards are also envisaged. Consumer support measures are being considered, such as special parking rights for small cars with the “Made in Europe” label.
In parallel, the “EU Inc” status (28th legal regime) is being developed, which will allow startups to register online under uniform EU rules in order to scale up faster and compete on the global market.
