Europe’s Made in Europe Label Excludes Morocco and Turkey
A Franco-German agreement limits the proposed “Made in Europe” label to the EU’s 27 member states, the United Kingdom and Norway, leaving out Morocco and…
A proposed European industry label is becoming a test of the bloc’s ties with its southern neighbours. The Europe’s Made in Europe label, under a Franco-German agreement reached on 15 October, would cover the EU’s 27 member states, the United Kingdom and Norway, while excluding Morocco and Turkey.
The agreement links that narrower origin rule to a change in the proposed emissions target for new cars: France accepted that the reduction by 2035 may be 90 per cent, with no requirement for manufacturers to offset the remaining 10 per cent. European institutions are now finalising positions on the wider Industrial Accelerator Act.
The label concerns more than the wording on products. It could determine which production qualifies for public procurement and subsidy programmes across European countries, while the car sector faces competition from Chinese manufacturers in electric vehicles.
A trade-off over cars and production
The European Commission put forward the Industrial Accelerator Act last March. The proposal seeks to raise industry’s share of European GDP from 14 per cent in 2024 to 20 per cent in 2035, while accelerating approval for low-carbon industrial projects.
It would also set European-content and labour rules for foreign investments exceeding 100 million euros. A further element would require “Made in Europe” and low-carbon production criteria in public procurement and subsidy programmes. That last provision has prompted debate over which countries count as European for the label.
France and Germany had taken different positions. Germany was concerned that stricter rules could trigger retaliatory measures affecting its interests in China, where its industry has invested more heavily than France’s. German manufacturers also sought more time to produce vehicles with internal combustion engines, rather than facing the 2035 deadline set out in the Green Deal.
France accepted a relaxation of the emissions requirement in the negotiations. The Green Deal currently stipulates a 100 per cent reduction in CO₂ emissions from new vehicles by 2035. Under the agreement, that reduction could fall to 90 per cent without manufacturers compensating for the remaining share, despite the European Commission’s initial proposal to require offsetting.
In return, Germany accepted a more limited list of countries eligible for the label: the EU’s 27 members, the United Kingdom and Norway.
Morocco and Turkey left outside
Morocco and Turkey were points of disagreement in the Franco-German talks. Both host factories belonging to the Renault and Stellantis groups, alongside facilities in Norway and the United Kingdom, according to Social Europe.
Their exclusion has direct implications for manufacturers whose production networks extend beyond the EU. Under the proposed definition, output from the two countries would not qualify for the “Made in Europe” label, even as the rules seek to encourage European production and low-carbon supply chains.
The dispute also raises a broader industrial question: whether European carmakers can compete in markets beyond Europe while facing restrictions on lower-cost production in nearby countries. Social Europe argues that competing with Chinese carmakers in the Global South requires production in neighbouring countries, and that the agreement penalises that approach.
The political tension extends beyond the car industry. The article says the exclusion sits uneasily alongside decades of Barcelona Process rhetoric and the new Pact for the Mediterranean. It also warns that partners who feel rejected could move closer to China and Russia, while the Global Europe development budget faces the deepest cuts in the next EU budget.
European institutions, including the Council and the Parliament, are still finalising their positions on the Industrial Accelerator Act. Its proposed industrial target is to lift industry’s share of European GDP from 14 per cent in 2024 to 20 per cent in 2035.
Source: socialeurope.eu
