Brussels, 8 July 2026 – As the European Parliament debates the Industrial Accelerator Act, in an open letter sent to members of the European Parliament, IndustriAll Europe is calling on MEPs to ensure the legislation delivers a strong industrial policy that protects manufacturing, supports innovation and reinforces Europe’s technological sovereignty.

 

Representing workers in factories, laboratories, engineering centres and testing facilities across Europe, IndustriAll Europe warns that the automotive industry is already facing mounting pressures. Declining production volumes, increasing international competition, deindustrialisation, growing dependence on imported components, the relocation of engineering and R&D activities, and falling investment in strategic technologies are putting Europe’s industrial base and more than two million direct manufacturing jobs at risk.

 

“The Industrial Accelerator Act must be judged on one simple question: does it strengthen Europe’s industrial and technological capabilities and secure quality jobs in Europe?” IndustriAll Europe states in its letter to Members of the European Parliament.

 

In contrast to disingenuous lobbying from auto OEMs, we insist that the IAA must include robust local content requirements that reflect today’s reality rather than lower existing thresholds. According to the European Commission’s Joint Research Centre, 80–85% of the inputs used in vehicles manufactured in the EU are currently sourced within Europe. The organisation warns that lowering effective local content requirements to around 55–60%, as estimated under certain implementation scenarios, would accelerate offshoring, weaken European supply chains, undermine technological capabilities and threaten thousands of skilled industrial jobs.

 

We call for a clear definition of “Made in Europe”. Products benefiting from the Act should be manufactured within the EU, EFTA countries, the United Kingdom and candidate countries that have fully transposed the acquis communautaire in ways that prevent social and environmental dumping. We reject any approach that would allow vehicles produced outside Europe, including in special economic zones benefiting from preferential tax or regulatory treatment, to qualify for incentives financed by European taxpayers.

 

We need stronger conditions governing foreign direct investment in strategic manufacturing sectors. While we welcome the European Commission’s intention to attach conditions to public support, investment should generate tangible benefits for European workers and communities. Projects receiving support should be subject to binding requirements on capital ownership, intellectual property, research and development, European sourcing and social standards throughout the workforce. It also cautions that limiting such conditions only to investments exceeding €100 million would leave significant gaps in the legislation.

 

We urge Members of the European Parliament to seize this opportunity to adopt legislation that genuinely strengthens Europe’s industrial base.

 

“Workers are asking for coherence, fairness and ambition. Europe’s industrial future must be designed, engineered and built in Europe, under European social standards, and guided by Europe’s long-term strategic interests.” 

 

As negotiations continue, IndustriAll Europe calls on the European Parliament to ensure that the Industrial Accelerator Act becomes a genuine driver of industrial resilience, quality employment and technological leadership across Europe.