04.03.2026 - “German industry now urgently needs the signal that doing business in Europe will become simpler and more cost-efficient for everyone. Sector-specific and fragmented approaches that increase bureaucracy and protectionism are not the breakthrough that the Europe location needs. The Industrial Accelerator Act (IAA) intervenes too much in entrepreneurial decisions and sends the wrong trade-policy message to the world. Anyone wishing to strengthen Europe must not alienate key partners.

Some approaches envisaged in the IAA, such as speeding up approval processes, go in the right direction for relevant sectors. However, there is no significant relief for the broad economy. Instead of consistently reducing bureaucracy for all businesses, new hurdles are likely to emerge – for example, in public procurement or regarding funding instruments. Additional requirements, far-reaching origins proof, and high demands in so-called lead markets particularly burden small and medium-sized enterprises. This costs time, money, and competitiveness.

A current DIHK survey highlights how sensitive this topic is: Three out of four businesses expect noticeable effects of ‘Buy European’ measures on their operations. The greatest concern is additional bureaucracy: 55 percent anticipate increased effort through origins proof. This is followed by cost concerns, which are nearly balanced with hoped-for competitive advantages: 42 percent expect higher production costs, and 43 percent anticipate better competitive conditions within the EU's single market. Other risks also remain on the radar: 36 percent fear reactions from trade partners and difficult market access to key non-EU countries. Furthermore, 29 percent see the risk of losing existing suppliers. (See graphic below.)

Localization or preference requirements may sound appealing but are not a cure-all economically. They don’t solve structural location problems but make production more expensive, narrow procurement markets, and restrict entrepreneurial freedom. In the end, distortions in international trade are likely.

Planned investment requirements for third-country investments also send a non-inviting signal to international capital providers. Europe needs openness, reliable framework conditions, and must adhere to its international obligations within the World Trade Organization and bilateral trade agreements.

Anyone wishing to strengthen Europe’s industry improves the competitiveness of the location, reduces bureaucracy, and facilitates investments – instead of creating new obstacles.”