Europe’s Big Bet on Industry and Innovation

On 4 March 2026, the European Commission unveiled an ambitious strategy to strengthen the EU’s industrial base and stimulate economic growth with the Industrial Accelerator Act.

This new initiative aims to boost European manufacturing, create jobs, and accelerate the shift to cleaner, future-ready technologies a key part of the Commission’s broader Clean Industrial Deal.

At its core, the Act seeks to increase demand for “Made in EU” and low-carbon products, especially in sectors like steel, aluminium, automotive components, and net-zero technologies, through targeted market incentives and public procurement reforms. This approach both supports local industry and reinforces Europe’s strategic autonomy amid growing global competition.

The proposal also includes modernising investment flows, ensuring foreign direct investments in strategic sectors deliver real value to EU economies such as job creation, technology transfer, and compliance with local content standards.

Simplified permitting and streamlined administrative processes are also part of the toolkit, helping businesses innovate and scale faster.

Perhaps most strikingly, the Act sets a visionary goal: to raise the share of manufacturing in EU GDP from about 14 % today to 20 % by 2035, rekindling Europe’s industrial dynamism and competitiveness for decades to come.

In an era defined by rapid technological change and fierce international rivalry, the Industrial Accelerator Act signals Europe’s intent to not just “go green,” but also to produce, innovate and lead  reinforcing that sustainability and industrial strength can go hand in hand.