On 4 March 2026, the European Commission (EC) published a legislative proposal for a so-called “Industrial Accelerator Act” (IAA) aimed at supporting the EU’s manufacturing sector, with a focus on selected strategic sectors. Overall, the IAA pursues an EU industrialisation objective that the EU’s manufacturing industry account for at least 20% of the EU’s gross domestic product by 2035.
As proposed, the IAA would set conditions on foreign direct investments (FDIs) in certain strategic sectors, aim to facilitate permitting for industrial manufacturing projects, lay down EU origin requirements and low-carbon requirements in the context of EU public procurement and public support, and create industrial manufacturing acceleration areas.
The EC proposes that each of these areas be addressed in separate IAA chapters.
Being a legislative proposal, the IAA will now go through the EU’s ordinary legislative procedure. It may be substantially amended by the European Parliament and the Council of the European Union (i.e. the Member States) over the coming months, before possibly entering into force.
