“The latest news from Germany shows the urgency to act decisively to protect our markets from unfair practices from our global competitors,” EU industry chief Stéphane Séjourné told POLITICO, calling the IAA a “decisive” tool.
The bill’s main provision, a Made in Europe preference, would favor locally made goods. Its supporters say it’s high time for the EU to defend its industry, but others want to hit the brakes on what they see as a protectionist measure.
Critics find the proposal risks turning into a legal maze for companies and driving up prices for EU-made products, while potentially shutting out friendly trading partners such as Canada, the U.K. or Japan.
“What is happening at Volkswagen is alarming, but it is not an isolated case. It is the consequence of years of European naivety while our global competitors pursued clear and aggressive industrial strategies,” said French liberal lawmaker Christophe Grudler, one of the three leaders on the file in the European Parliament.
Negotiations involving EU countries and lawmakers are only now getting underway after the European Commission presented its proposal with a three-month delay in March. Officials privately acknowledge that time is already running short to secure a compromise by the end of the year, as prescribed by the EU’s One Europe, One Market roadmap.
Who’s to be trusted
The toughest challenge ahead is agreeing on which countries should be included on a list of “trusted partners,” whose products will be likened to European ones in some areas of public procurement and funding.
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