The EU Commission has agreed to support the German government on one of its most important industrial‑policy initiatives. Under the plan, the share of the manufacturing sector in EU GDP is set to reach 20 % by 2035. Now the EU is pushing the target back by five years, a move said to be driven by pressure from German Chancellor Friedrich Merz (CDU). The new deadline appears in the draft of the “Industrial Accelerator Act” a development reported by Handelsblatt’s Friday edition.
Another German proposal now gains traction: manufacturers located in partner countries would be counted as EU producers if those countries have a trade agreement with the EU. This would allow European firms to claim parts produced in places like Canada or India, giving partner nations access to EU subsidies as well.
During the EU competitiveness summit, leaders discussed measures to better harness Europe’s industrial capacity and to safeguard it against aggressive competition from China and the United States. On February 25 the Commission is scheduled to formally present its plan, a date that has already been postponed multiple times.