'Made in EU' plan puts Türkiye at heart of Europe's industrial revival

The European Commission unveiled its ambitious Industrial Accelerator Act on Wednesday, introducing a "Made in EU" requirement designed to boost domestic manufacturing to 20% of the bloc's GDP by 2035 while reducing reliance on Chinese imports. The proposal leverages the EU's €2 trillion public procurement market to enforce strict production and low-carbon quotas across strategic sectors including automotive, steel, aluminum, cement, chemicals, and net-zero technologies.

Türkiye's Strategic Inclusion

Following months of negotiations, the draft legislation explicitly recognizes Türkiye's Customs Union agreement with the EU, classifying Turkish-made goods as having EU origin when competing for European public contracts and state subsidies. Trade Minister Ömer Bolat hailed the development as a critical milestone in bilateral trade relations, noting that inclusion means Türkiye's vital automotive and steel sectors will not be excluded from their largest export market. Türkiye's geographical proximity, advanced production infrastructure, and skilled workforce position it as a prime manufacturing and supply hub for the bloc.

Sectoral Implications

The proposal mandates that electric vehicles procured through public funds must be assembled within the EU six months after enactment, with 70% of components—excluding batteries—originating in Europe. Strategic sectors face graduated requirements: 25% of aluminum and steel used in public procurement must be European-produced and low-carbon. For renewable energy, basic solar panel components must be manufactured in Europe within three years. Foreign investments exceeding €100 million in sectors where third countries control over 40% of global production face strict scrutiny.

EU Internal Debate

The initiative has sparked debate among member states, with France advocating for narrow scope while Germany warns that stringent local production requirements could deter investment and weaken global competitiveness. Berlin has proposed a "Made with Europe" alternative emphasizing partnership with trading partners. The proposal will undergo further negotiations in the European Parliament, where Türkiye's inclusion under the Customs Union framework appears solidified regardless of the final text's evolution.