The European Commission’s proposed Industrial Accelerator Act (IAA) marks one of the most significant shifts in EU economic policy in decades. Long associated with a focus on (neo-)liberalism, competition policy and global trade, the European Union is now embracing a more interventionist industrial strategy aimed at strengthening domestic manufacturing, reducing strategic dependencies and responding to an intensifying geopolitical competition. By introducing elements of European preference and seeking to actively shape industrial investment, the IAA reflects a genuine change of the EU’s doctrine.
Yet the proposal leaves doubts about what kind of industrial future Europe is seeking to build. The IAA clearly prioritises reindustrialisation over decarbonisation, with clear climate-related objectives and safeguards notably absent. The meaning of its flagship ‘Made in EU’ principle, too, can be questioned: while presented as a tool to strengthen European production, the proposal is ambiguous on the treatment of components sourced from third countries and the extent to which third-country-owned production can qualify as ‘European’.
In addition, as one of our authors argues, industrial policy cannot be assessed solely through investment and output targets. Public support should be linked to labour rights, collective bargaining, skills development and quality employment. With this dossier, the Progressive Post aims to raise broader questions not only about Europe’s industrial competitiveness, but also about the relationship between industrial policy, climate objectives, economic sovereignty and social standards.
Photo credits: European Union , 2026
