Europe Launches Ambitious 'Made in Europe' Push to Challenge China and US Economic Dominance
Brussels, Saturday, 17 January 2026.
The European Commission is spearheading a French-led initiative to dramatically increase European industrial production, with proposed requirements for 60-80% European content in major investments. This strategic shift represents Europe’s boldest move yet toward economic sovereignty, coming as the bloc faces a record €350 billion trade deficit with China. The upcoming Industrial Accelerator Act will subject foreign investments over €100 million to strict conditions including technology sharing and local hiring requirements, marking a fundamental departure from Europe’s traditionally open market approach.
Commission’s Strategic Call to Industry Leaders
The European Commission is actively requesting business leaders to “support and sign” the French-led initiative to boost European industrial production, according to a letter obtained by Euronews [1]. This direct appeal from the EU executive comes just days before the scheduled presentation of the Industrial Accelerator Act on January 29, 2026 [1]. The timing reflects the urgency with which Brussels views the need to reshape Europe’s industrial landscape amid intensifying global economic competition.
Proposed Policy Framework and Financial Mechanisms
The Industrial Accelerator Act will subject foreign investments exceeding €100 million to stringent conditions including technology sharing, local hiring requirements, and mandatory joint ventures [8]. The Commission is exploring percentage requirements for European products under the upcoming legislation, with figures ranging from 60% to 80% being actively considered [1]. These thresholds would apply across various industrial sectors, fundamentally altering how international companies operate within European markets.
Economic Pressures Driving Policy Change
The urgency behind these measures stems from alarming economic indicators, particularly the “record trade deficit of €350 billion” with China recorded in 2025 [1]. This massive imbalance has prompted industry leaders to question why Europe lacks protective mechanisms similar to China’s “Made in China” or America’s “Buy American” policies, as expressed in a letter signed by EU businesses [1]. The deficit represents a substantial drain on European economic resources and highlights the continent’s vulnerability to external economic pressures.
Member State Reactions and Implementation Challenges
The initiative has encountered significant internal resistance, with nine countries—Czechia, Estonia, Finland, Ireland, Latvia, Malta, Portugal, Sweden, and Slovakia—warning in December 2025 that the Commission’s proposed law could have “consequences for effective competition, price and quality levels, and effects on businesses” [1]. Poland and the Netherlands have specifically backed calls for an impact assessment of the Industrial Accelerator Act, highlighting concerns about potential market distortions [1]. This opposition reflects broader tensions between economic sovereignty goals and traditional free market principles within the EU.