France and Germany Split Over Scope of EU ‘Made in Europe’ Rules

France and Germany are at odds over how the European Union should define products that qualify as “Made in Europe,” as the bloc negotiates measures intended to counter state-subsidised Chinese competition.

France is pressing for a narrow definition initially limited to the EU’s 27 members. French Industry Minister Sébastien Martin said European public money should support European workers and factories, while Europe Minister Benjamin Haddad said countries outside the single market that do not contribute to its financial capacity should not receive the same protection. That approach could exclude British companies from preferential access to subsidies and public contracts for low-carbon technologies and electric vehicles under the proposed Industrial Accelerator Act.

Germany favors a broader “Made with Europe” approach that would include the UK and other allied countries, subject to reciprocity. German Economic Affairs Minister Katherina Reiche said the EU should reduce critical dependencies without isolating itself. Sweden and other Nordic countries broadly support that position.

Spain is seeking to bridge the Franco-German divide, according to Bloomberg. The issue has also divided Europe’s center-right political groups. The policy remains under negotiation, with debate continuing over whether partners including the UK, Canada and Japan should qualify.