Spain proposes three-tier country framework for EU 'Made in EU' rules
The European Union is shaping new industrial rules as it tries to shield domestic manufacturers from global competitors facing looser regulatory and energy cost pressures. Spain has put forward a three-layer model that would let Brussels apply "Made in EU" eligibility by sector, while leaving some allies uncertain until the law is finalised in 2027.
Highlights
- Spain proposes a three-tier system under the EU Industrial Accelerator Act to classify third countries by sector and agreements, aiming for tailored reciprocity.
- The second tier covers EEA members and 'trusted partners,' while the third includes countries with free trade, customs, or procurement agreements, benefitting those supplying critical components.
- Final decisions on exemptions tied to trade agreements or reciprocity will not be made until after the act's adoption in 2027, leaving countries like Britain and Japan in uncertainty.
Proposal outlines sector-based eligibility
As reported by Reuters, Spain has proposed a three-tier system to determine which third countries qualify under the European Commission's planned Industrial Accelerator Act, or IAA. The approach is designed to avoid a blanket policy and instead tailor treatment by sector.The first layer would cover only the EU's 27 member states. The second would include the European Economic Area and what the proposal calls trusted partners, while the third would apply to countries with a free trade, customs or procurement agreement with the EU.
The document says the structure would let the Commission act "surgically" rather than exclude an entire country because of a lack of reciprocity in a single product. It also says countries producing critical components that cannot easily be replaced in the EU could qualify for the third tier, and that the way the layers are applied could change over time as the bloc's own industrial capacity grows.
Implications for allies and EU industry
The IAA forms part of wider EU efforts to help local industry compete with global rivals, particularly China, whose producers do not face Europe's strict rules and higher energy costs. Under Spain's proposal, goods from EU member states as well as Iceland, Liechtenstein and Norway would qualify because those countries are part of the EEA.The final list of exemptions linked to trade agreements or reciprocity would not be decided until after the act is agreed in 2027. That leaves partners such as Britain and Japan without clarity for now on how their companies would be treated under the future regime.
Our earlier coverage of Italy’s budget deficit dispute with ISTAT detailed how the confirmed 3.1% shortfall kept Rome exposed to the EU’s excessive deficit procedure. We noted that the clash highlighted tensions between political goals and independent economic institutions, with implications for fiscal credibility ahead of elections.
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