The EU’s controversial ‘Made-in-Europe’ proposal is postponed again to March 4, amid internal disputes over protectionism and foreign partner inclusion.

BRUSSELS: The European Commission has postponed the presentation of its contentious ‘Industrial Accelerator Act’ for a third time, pushing the date back to March 4 to allow for further internal discussions.

Officials confirmed the delay on Monday, stating the proposal, which was initially expected last December, will now be presented next week after being previously rescheduled to January and then to this Thursday.

The cabinet of EU industry chief Stephane Sejourne, who will present the proposal, said it hoped “this additional week of internal discussions will allow to make the proposal even more rock-solid”.

The hotly debated plan aims to favour European companies over foreign rivals by requiring firms to source a certain percentage of components from within the 27-nation bloc to access public funds.

The new rules are expected to cover a limited number of strategic sectors, including green technology, cars, chemicals and steel, in a bid to facilitate ‘Made in Europe’ production.

France has strongly defended the proposal as a means to protect its national electric car battery industry, while Germany has pushed back with Chancellor Friedrich Merz calling it a measure of “last resort”.

Several free-trade supporting countries, including Sweden and the Netherlands, have warned against veering into protectionism with the new rules.

Tense internal debates have also centred on whether to include the EU’s partners, such as Japan, with the latest draft seen by AFP including a reference to “trusted partners” to address such concerns.

EU chief Ursula von der Leyen has supported the plans, arguing they would help “strategic sectors” and support scaling-up European production capabilities.

 The Sun Malaysia