Made in Europe rules split EU countries

European Union countries are split over how to define “Made in Europe” as the bloc prepares rules that could affect which companies receive public money in strategic sectors such as cars and clean energy.

The European Commission proposed in March that companies in strategic sectors should buy European if they want public support. Brussels favours a broader definition that could cover products made by some partner countries linked to the EU through free trade agreements, customs unions or public procurement deals.

France says that approach is too broad. French Industry Minister Sebastien Martin said before a Brussels meeting with EU counterparts on Thursday that European public money should support European workers and factories.

Germany, Belgium and several other EU countries support a looser approach described as “Made with Europe”. German Economy Minister Katherina Reiche said Europe should increase manufacturing while still relying on trusted partners such as Norway, Switzerland and Canada.

Belgian minister David Clarinval told AFP he wanted an open list of countries that “play by the rules”, citing Britain, Switzerland, Canada and South Korea as examples.

The proposal needs agreement among EU governments and the European Parliament before it can become law. Ireland, which holds the EU’s rotating presidency until the end of the year, is trying to secure a common position among the 27 member states within weeks.

One compromise under discussion would adapt the definition by sector or even by product. Poland’s Michal Baranowski said his country supported a balanced approach but that it was too early to say whether countries such as Britain, Australia, Japan or Switzerland would be included.

Britain has raised concern about possible exclusion, while Japanese carmakers have questioned the impact of the rules. EU lawmakers are also preparing amendments to the proposal.