Industry ministers from France and Germany are at odds over the definition of 'Made in Europe' under the Industrial Accelerator Act (IAA), with France insisting on EU27-only eligibility and Germany advocating inclusion of free-trade partners like the UK, Canada, Japan, and Turkey. The debate has serious implications for subsidies and public contracts in electric vehicles, batteries, and cleantech sectors. Diplomats warn a broad definition could allow Chinese firms to circumvent the IAA by investing in Turkey, undermining its goal to boost European manufacturing.

Spain is preparing a compromise proposal, while Germany and France also discuss flexibility on the 2035 combustion engine phaseout if a strong 'Made in Europe' standard is met. Poland supports a balanced approach recognising trade links. Meanwhile, the EU’s defence commissioner criticised the lifting of sanctions on Russian oligarchs Alisher Usmanov and Mikhail Fridman as 'not a good signal'.

Industry ministers will also discuss Chips Act 2.0, with Ireland seeking a political steer on balancing technological sovereignty, competitiveness, and cooperation in semiconductors.