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EU Unveils Industrial Plan to Prioritise European Production and Limit Chinese Access
The European Commission has presented a sweeping industrial strategy aimed at shielding key sectors from foreign competition and limiting China’s access to EU public funding and investment opportunities.
EU Industry Commissioner Stéphane Séjourné unveiled the Industrial Accelerator Act in Brussels on Wednesday, describing it as a response to mounting global uncertainty and what he called unfair competition. The plan introduces a “European Preference” designed to direct taxpayer-funded support toward companies producing within the bloc.
The initiative follows significant job losses across Europe’s manufacturing base. Since 2024, around 200,000 jobs have been lost in energy-intensive industries and the automotive sector. Projections suggest up to 600,000 additional losses in car manufacturing over the coming decade, as Chinese exports increase and foreign-owned plants generate limited local employment.
The strategy focuses on three strategic sectors: clean technologies, automotive manufacturing and energy-intensive industries such as aluminium, steel and cement. Under the new framework, products benefiting from EU public funding will need to meet “Made in Europe” thresholds. Electric vehicles must contain at least 70 percent EU content, with some exceptions for battery components. Aluminium and cement products will be subject to a 25 percent EU-content requirement.
Séjourné said the measures would strengthen supply chains, reduce dependencies and enhance economic security. He argued the plan would create jobs by ensuring public money supports domestic production.
The proposal has exposed divisions among member states. Nordic and Baltic countries cautioned that stricter rules could deter investment and restrict access to foreign technology. Germany advocated allowing goods from trusted trade partners to qualify under the European label, while France supported a tougher stance.
The Commission has proposed that products from countries with reciprocal free trade agreements with the EU could be treated as EU-origin in public procurement. This would exclude China and the United States, which do not have such agreements with the bloc.
Stricter conditions are also planned for foreign direct investment exceeding €100 million in sectors including batteries, electric vehicles, solar panels and critical raw materials. Investors from countries holding 40 percent of global market share in a given sector would be required to ensure at least half of jobs go to EU workers. Additional conditions include limits on foreign ownership, joint ventures with European partners, technology transfers and commitments to research and development within the bloc.
The proposal will now move to the European Parliament and the Council for approval as debates continue over how best to balance openness with industrial protection.
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France and Portugal Enact Landmark Treaty to Deepen Strategic Ties
A new chapter in relations between France and Portugal began on Sunday as a wide-ranging friendship treaty between the two countries officially entered into force, marking a significant step toward closer cooperation across multiple sectors.
The Treaty of Friendship and Cooperation, signed in Porto in February 2025 by Emmanuel Macron and Portuguese Prime Minister Luís Montenegro, is designed to strengthen bilateral ties and reinforce collaboration within Europe.
French officials have described relations with Lisbon as “excellent,” highlighting the agreement as part of a broader effort to build a more self-reliant and competitive Europe. In a message to Portugal’s newly elected president, António José Seguro, Macron pledged to ensure the treaty delivers tangible benefits for both nations.
The agreement covers a wide range of areas, including defence, energy, trade and education. Both countries have committed to enhancing cooperation between their armed forces and defence industries, with a focus on safeguarding critical infrastructure and countering hybrid threats, particularly in cyberspace.
Energy cooperation also features prominently. France and Portugal aim to improve interconnections across the Iberian Peninsula, an issue that gained urgency following a major blackout affecting Spain and Portugal in April 2025. Officials say better integration with European energy networks will help prevent future disruptions and support long-term resilience.
On the economic front, the treaty promotes stronger support for small and medium-sized enterprises and encourages joint efforts in developing a sustainable “blue economy” linked to the Atlantic Ocean. Trade ties between the two countries are already robust, with France ranking as Portugal’s third-largest trading partner in 2025.
Analysts point to growing investment flows in both directions. Portuguese businesses are increasingly establishing a presence in France, while French firms continue to expand operations in Portugal, reflecting deepening economic integration.
People-to-people links are another key pillar of the agreement. Around 1.7 million Portuguese nationals live in France, making them one of the largest foreign communities in the country. Meanwhile, tens of thousands of French citizens reside in Portugal.
The treaty also aims to boost educational cooperation, including teacher training and student exchanges. However, some observers have raised concerns about practical challenges, particularly a shortage of Portuguese language teachers in France, which could limit progress in this area.
Implementation of the agreement will be overseen through regular high-level meetings between the two governments, ensuring continued coordination and follow-up on agreed initiatives.
The pact forms part of a wider strategy by France to deepen bilateral ties across Europe, following similar agreements with Germany, Italy and Poland, as Paris seeks to strengthen partnerships within the European Union.
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