EU Industries Warn European Preference Could Disrupt Supply Chains
Concerns Ahead of Leaders’ Summit
Industry representatives across the European Union have raised concerns about the proposed “European preference” policy as EU leaders prepare to discuss competitiveness at an informal summit on Thursday.
Business groups told Euronews that prioritizing “Made in Europe” products could disrupt global supply chains and create uncertainty for manufacturers. They questioned how the policy would function in practice and warned that sudden changes could harm existing production networks.
Proposal Under Industrial Accelerator Act
French Commissioner Stéphane Séjourné introduced the European preference proposal as part of the Industrial Accelerator Act, which the Commission plans to present on 25 February after several delays.
The proposal would give priority to EU-made goods and services in public procurement. In addition, it would set criteria that favor domestic production within EU supply chains. Supporters argue that the measure would strengthen European industry and reduce dependence on foreign imports.
Push for Competitiveness and Sovereignty
EU leaders have placed “Made in Europe” high on their agenda as they seek to improve competitiveness and shield the bloc from strong competition, particularly from the United States and China. At the same time, policymakers aim to lower Europe’s reliance on imported clean technologies, batteries, steel, and other energy-intensive products.
However, industry groups caution that forcing manufacturers to shift production to Europe could interrupt established supply routes. Companies might need to build new networks, which could increase costs and slow operations.
Risk of Higher Costs
Several analysts argue that although the policy seeks to secure industrial sovereignty, it could significantly raise costs for sectors that depend on complex supply chains. Downstream industries such as construction and automotive manufacturing may face higher production expenses if companies limit access to global suppliers.
As EU leaders continue discussions, businesses are urging policymakers to carefully assess the economic impact before implementing any preference rules.
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