BRUSSELS – German Economy Minister Katherina Reiche has launched a stinging critique of the European Commission’s latest industrial strategy. As she arrived for a competitiveness meeting on Thursday, Reiche warned that the proposed Industrial Accelerator Act threatens to drown businesses in bureaucracy.
The Minister voiced her concerns just one week before the Commission officially presents the plan. According to Reiche, the proposal introduces 30 additional sub-regulations. She argued that this complexity contradicts the EU’s stated goal of simplifying business operations across the continent.
Excessive Bureaucracy Sparks Berlin’s Pushback
Reiche highlighted that this act represents the “50th proposal” running parallel to numerous existing procurement rules. She believes that European companies currently need more freedom and fewer directives from Brussels to remain competitive.
“This is the opposite of reducing bureaucracy,” Reiche stated firmly. She emphasized that the German government wants to see more leeway for national industries. Interestingly, both Reiche and Commission President Ursula von der Leyen belong to the same conservative party, yet Berlin remains a vocal critic of the Commission’s “red tape.”
The Debate Over ‘Made in Europe’ Labels
The Industrial Accelerator Act also fuels a heated debate regarding public funding. Specifically, it questions whether the EU should give legal preference to European-made products. While Reiche supports protecting sensitive production, she fears a protectionist approach could damage international trade ties.
She specifically noted the risk to strategic global partnerships:
Canada: A key trade ally that could be alienated by restrictive rules.
India: A vital emerging market for European technology and trade.
Global Supply Chains: The risk of retaliatory measures from non-EU nations.
Advocating for a ‘Made with Europe’ Approach
Rather than a closed-door policy, Reiche proposed a more inclusive vision for the future. She suggested that a “Made with Europe” label would better serve the modern global economy. This shift would allow for collaboration with international partners while still maintaining European standards.
Consequently, the Minister warned that the EU cannot invite countries like India to trade while simultaneously closing off procurement. This balance between protection and partnership will likely be the central point of contention when the Act is formally revealed next week.
