KATHMANDU: The European Union is preparing new ‘Buy European’ rules to support local manufacturing and reduce dependence on foreign suppliers, especially in key sectors like batteries, electric vehicles, and renewable energy according to FT.
Under the proposal, known as the Industrial Accelerator Act, companies would need to use a minimum share of European-made parts to qualify for government subsidies and public contracts.
The policy could redirect a large portion of the EU’s public procurement spending; worth about USD 2.2 trillion toward European manufacturers.
The move comes as companies like French battery maker Verkor work to increase local sourcing. Verkor says over 50 percent of its battery materials currently come from Asia, but it aims to raise European content to 60-70 percent in the coming years.
Supporters say the rules are needed to protect Europe’s manufacturing industry, valued at around USD 2.8 trillion, which is under pressure from high energy costs, cheaper imports from Asia, and uncertain global trade conditions.
EU officials argue similar policies already exist in the US and China.
However, the plan has faced opposition within the EU. Critics warn that stricter local-content rules could raise costs and reduce competitiveness. EU leaders are expected to discuss the proposal at a meeting on February 12, ahead of a formal announcement later this month.
The debate reflects Europe’s challenge of balancing industrial protection with open trade in a changing global market.
