04 March 2026

European Commission Publishes Industrial Accelerator Act Proposal

Brussels, 4 March 2026

The European Commission has now published the Industrial Accelerator Act (IAA). Announced in the Clean Industrial Deal and aligned with the recommendations of the Draghi Report, the IAA aims to boost demand for low-carbon technologies and products made in Europe.

The proposal introduces targeted “Made in EU” and/or low-carbon requirements for public procurement and public support schemes. These measures will apply to several strategic sectors, including automotive.

For vehicles, the proposal introduces a three-level definition of “European vehicles”, requiring:

• Vehicle assembly in the European Union
• An immediate 70% local content threshold for automotive production in the EU region
• A 50% threshold for critical components, to be implemented within three years

The IAA comes at a time of growing geoeconomic competition, as Europe seeks to reverse the decline of its industrial share in the global economy.
Importantly, the proposed “Made in Europe” approach goes beyond final assembly. It aims to strengthen entire value chains, from the production of materials and intermediate components to final manufacturing and deployment.

We support this approach. Europe must keep its strong automotive supply chain! 

The proposed Regulation must now enter into negotiations between the European Parliament and the Council of the European Union before its adoption and entry into force.

–> Read the European Commission Press Release

–> Read the European Commission’s proposal on an Industrial Accelerator Act

–> Check our LinkedIn post

For more information, contact:

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