The European Commission's proposal for an Industrial Accelerator Act (IAA) has landed in Brussels with the weight of expectation behind it. Framed as a direct response to Mario Draghi's call to action on competitiveness, the Act aims to reverse the slow decline of EU manufacturing and push its share of GDP to a robust 20% by 2035.
The IAA's three-pronged approach - stimulating demand for 'Made in EU' green products, scrutinising large foreign investments, and slashing permitting red tape - represents a significant shift in industrial strategy. But as the proposal moves through the legislative process, the initial political fanfare is giving way to a more cautious and pragmatic assessment from the very businesses it seeks to bolster.
The reaction from European industry can best be described as cautiously supportive, but with a clear-eyed view of the potential pitfalls. The overarching message from boardrooms across the continent is one of balance.
On the one hand, there is genuine appreciation for the ambition. After years of what many perceived as a fragmented industrial policy, the IAA signals a commitment to strengthening Europe's manufacturing base. The focus on accelerating permits, in particular, has been welcomed as a long-overdue remedy to the chronic delays that have plagued major industrial projects. For sectors like energy-intensive industries and cleantech, the promise of faster approvals in designated 'industrial acceleration areas' is a tangible step forward.
However, beneath this support lie significant concerns. The first revolves around the 'Made in Europe' criteria in public procurement. While the Commission insists this is about reciprocity, not protectionism, businesses fear it could be a slippery slope. There is a worry that such clauses might distort the market, increase costs for European companies that rely on integrated global supply chains, and ultimately invite retaliatory measures from trading partners. The question being asked is: can we build fortress Europe without making our industries less competitive globally?
This ties directly to a second area of concern: foreign direct investment (FDI). The proposal to impose conditions on large-scale FDI from dominant global players is seen by some as strategically necessary, but by others as a potential deterrent. The fear is that new conditionalities - on technology transfer or job creation- could make the EU a less attractive destination for the very capital needed to build gigafactories and scale up new technologies. Striking the right balance between safeguarding strategic interests and maintaining openness will be critical.
Then there is the paradox of bureaucracy. The IAA aims to cut red tape for industrial projects, yet its own mechanisms - new procurement rules and FDI screening - will inevitably introduce new layers of administrative process. Industry leaders are nervously watching to see if the promised simplification for some will be offset by greater complexity for all. The fear is that the cure could, in some ways, mirror the disease.
These concerns are not uniform across the board. The Act is already generating sectoral ripples. The steel, cement, and clean-tech industries, explicitly named as beneficiaries, are naturally more supportive. They stand to gain from the demand-side signals and targeted support. However, downstream users of these materials - for example, in construction or engineering - worry about higher costs and reduced choice. Sectors not at the heart of the IAA's focus fear being left behind in the race for investment and political attention.
For Italian small and medium-sized enterprises, which are the beating heart of our manufacturing economy, these are not abstract debates. The concern is that the administrative burden of navigating new 'Made in EU' criteria or FDI screening could fall disproportionately on smaller firms with limited resources. While the IAA aims to support European industry, it must not inadvertently create barriers that exclude the very SMEs that are the engine of Italian innovation and employment. Moreover, given the strong integration in the Italian business environment between manufacturing and service SMEs, no negative effects or barrieres must fall on the latter.
The Industrial Accelerator Act is undeniably a bold and necessary piece of legislation. It correctly identifies the strategic imperative to revitalise European industry. But as it enters the parliamentary and Council negotiations, the challenge will be one of fine-tuning. Can the EU craft a policy that is robust enough to build industrial strength, yet flexible and open enough to remain a magnet for global investment and innovation - all while ensuring that smaller players are not left behind? The coming months will reveal whether the IAA becomes a true accelerator or gets bogged down by the very complexities it seeks to overcome.
Giuseppe Tripoli
Secretary General of Unioncamere