France leads EU push to exclude UK from 'Made in Europe' law

Germany, Nordic states push broader ‘Made with Europe’ including UK

French industry minister Sébastien Martin told reporters in Brussels on Thursday that “European taxpayers’ money should support [European] workers and European factories,” as France pushed the EU to narrow the scope of its “Made in Europe” framework and exclude the United Kingdom. The proposal, still under negotiation, is intended to shield European companies from state-subsidized Chinese competition in sectors ranging from electric vehicles to renewable-energy technology.

Martin tied the French position to Britain’s departure from the bloc. “The United Kingdom made a choice a few years ago to leave the European Union,” he said. “That doesn’t mean that we don’t discuss things or that we don’t trade, it doesn’t mean that there can’t be agreements in certain sectors, but fundamentally there are those who have chosen the European project and those who have decided to leave.”

The French message reached the UK directly. Speaking in London, French Europe minister Benjamin Haddad told UK officials that participation in EU protections required participation in the bloc’s internal market. “At the end of the day, if you are not part of the internal market and if you are not contributing to the financial capacity of the internal market, you don’t get the same kind of protection,” Haddad said.

Germany pushed back at the same Brussels meeting. “We must reduce unilateral and critical dependencies, but we must not isolate ourselves from the rest of the world,” economic affairs minister Katherina Reiche told her counterparts. “This means that partner countries must be included in the union-origin principle, in general and on the condition of reciprocity.” Germany wants a broader “Made with Europe” policy that would include the UK and other allies. There is intense debate inside the EU over how to define “made in Europe” and how far to include countries such as the UK, Canada and Japan.

Reiche’s position drew broad support from Nordic countries, which have historically favored open trade. Sweden’s outgoing deputy prime minister Ebba Busch, who leads on business policy, said “we always miss the Brits.” Sweden wanted, she added, “a good solution where there is balance, given that some European countries are not members of the European Union but still completely essential for a functioning European market.”

The core of the dispute is the Industrial Accelerator Act, one key EU proposal. Under the proposal, authorities spending public money — awarding subsidies or signing public contracts — would be required to favor European-made products in sectors such as renewable technologies and electric cars. The UK government has warned that British companies could lose out in the race to supply European countries with low-carbon technologies and electric cars, and that they could be collateral damage in a policy designed to counter what the EU describes as unfair Chinese state subsidies.

UK Prime Minister Andy Burnham raised the issue directly with European Commission president Ursula von der Leyen on the sidelines of the UN General Assembly earlier this week. Resolving the UK’s status has become one of Burnham’s top priorities for the EU-UK relationship.

The charged internal EU27 debate on Made in Europe has raised questions about the timing of the EU-UK reset summit, which was postponed when Keir Starmer stood down as prime minister. British officials now expect the summit to take place in November, though an earlier proposed date of 6 November has been scratched out. By December, EU leaders are expected to be consumed by internal negotiations on the bloc’s next seven-year budget, a process likely to absorb the political bandwidth of member-state governments and EU institutions alike.

One EU diplomat said it would be a “big risk” for the UK to insist on a deal at an autumn summit, because “Made in Europe” criteria remain deeply contested inside the bloc. “It puts [the UK] in a corner, because this [Made in Europe criteria] is a process that is very difficult for the EU27 [to agree internally],” the diplomat said.

Ireland, which holds the rotating EU Council presidency and is chairing the ministerial negotiations, hopes for a December agreement on the Industrial Accelerator Act, including its “Made in Europe” provisions, between the EU Council and the European Parliament. “There are a divergence of views on the Industrial Accelerator Act, on European preference, on working with trusted partners and third countries,” Ireland’s enterprise minister Peter Burke told reporters in Brussels. “It is difficult, but we have a pathway in sight.”

Poland’s economic development minister Michał Baranowski said it was too early to determine which countries would fall inside or outside the eventual definition. “All these countries are in the mix of the discussion,” Baranowski said, naming Switzerland, the UK, Japan, Australia and Canada. The UK, he added, should have clarity on its status when the EU act is passed: “We are in the last stretch, but this last stretch might take a while.”

A UK government spokesperson said in a statement: “The UK is a close and trusted European partner, committed to our shared security and economic cooperation. We will continue to engage with the EU on Made in Europe and work together, as like-minded partners, to boost growth and open up trade.”

EU insiders believe a “Made in Europe” agreement is a top priority for the UK, but cautioned that it cannot happen before the union finalizes its own position. With Irish-led talks targeting December and the UK-EU reset summit now expected in November, both sides face a compressed window to align before the EU’s budget cycle overtakes the broader industrial-policy agenda.