Germany and Spain clash over who gets into ‘Made in Europe’

Germany and Spain are at odds over the design of a “Made in Europe” scheme that would give preferential access to public procurement contracts for products originating from certain countries, a dispute that threatens to stall the European Commission’s Industrial Accelerator Act. The German position paper, obtained by POLITICO ahead of Thursday’s EU industry ministers’ meeting, calls for a broad “Made with Europe” club that could admit up to 80 nations—any country with a free‑trade, public‑procurement agreement or customs union with the EU, plus an “opt‑in” route for third states offering reciprocal treatment. By contrast, Spain’s paper proposes a three‑tiered system: the first tier reserved for the 27 EU members, a second tier for European Economic Area states and other “trusted” partners, and a third tier for countries linked by free‑trade, customs‑union or procurement accords, with the possibility of upgrading status as trade ties deepen. France, the bloc’s second‑largest economy, backs a more restrictive approach that would limit public money to products whose production takes place in Europe, even if some added value originates elsewhere.

The clash reflects deeper strategic calculations about how the EU will channel its massive public spending on green technology, energy‑intensive industry and automobiles toward European firms in competition with China’s export power. Germany, the EU’s export heavyweight, warns that narrowing the club would amount to protectionism and breach the bloc’s legal obligations to its trade partners, arguing that an open, inclusive framework is essential for maintaining reliable commercial relationships. Spain, meanwhile, argues that a granular, risk‑based tiered model would enhance both the effectiveness of the Industrial Accelerator Act and its political acceptability, ensuring that public funds are directed toward genuinely European production while still accommodating trusted external partners. The divergent views have split the centre‑right European People’s Party, with German and Spanish factions pulling in opposite directions, and have forced the EU’s legislative timetable into uncertainty as both the Council and Parliament must reconcile their positions before a compromise can be drafted.

Ireland, which chairs the intergovernmental talks until the end of the year, is attempting to bridge the divide by convening deputy ambassadors on Oct. 7 and presenting a new compromise by mid‑month, with a target to seal an agreement in November. Meanwhile, the United Kingdom is watching the negotiations closely; the new Labour government under Prime Minister Andy Burnham has raised concerns about possible exclusion from the “Made in Europe” club, a point that EU officials say cannot be pre‑empted before the legislative process concludes. With the deadline for parliamentary amendments set for Oct. 7 and the EPP‑led postponement of the Council’s deadline to Oct. 14, the timeline for finalising the Industrial Accelerator Act is slipping, casting doubt on the Commission’s ambition to adopt the legislation within the current year. The outcome will shape the EU’s ability to marshal public procurement as a tool for industrial policy and will determine which global partners can benefit from the bloc’s substantial green‑tech spending.

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