The Industrial Accelerator Act, presented in March 2026, aims to raise industrial value creation in Europe to 20% of GDP by 2035. This will primarily support energy-intensive sectors, net-zero technologies, and the automotive industry.
The German Chamber of Commerce and Industry (DIHK) acknowledges the strategic relevance of the initiative: The IAA sends an important signal for Europe as an industrial location, it states in its May 2026 position paper. At the same time, it strongly criticises key elements of the draft: Small and medium-sized enterprises (SMEs), in particular, are at risk of being disproportionately burdened by detailed regulations and state-controlled trade.
Key Points in Brief
- The IAA sends a positive signal for Europe as an industrial location but interferes too much with entrepreneurial freedoms in many areas.
- Accelerating approval procedures is the right approach – however, the specific measures will hardly have noticeable effects.
- EU origin criteria should be WTO-compliant, time-limited, easy to implement.
- The planned rules for foreign investments go significantly beyond the existing EU screening regime and endanger Europe's attractiveness as an investment location.
- Lead market regulations must not effectively exclude SMEs from public procurement processes.
Background
The IAA should be understood as a European response to increasing geopolitical rivalries, strategic dependencies, and unfair trade practices by third countries. The European Commission's regulation proposal consolidates various policy objectives: resilience, competitiveness, economic security, and climate protection. The measures foreseen include expediting approval processes, introducing so-called lead markets with EU-origin and carbon criteria, new rules for foreign investments, and designating "Industrial Acceleration Areas," where simplified approval procedures will apply. According to a recent DIHK survey, 55% of companies expect to face greater effort due to origin documentation under such a "Buy European" approach, while 43% anticipate better competitive opportunities in the EU internal market.
DIHK's Demands
- Broad application instead of niches – Preserving technology openness:
Reducing bureaucracy and accelerating approval processes should apply to the entire economy – not just selected sectors. - Think Small First:
All new measures must be tested for their practical suitability for SMEs. - Ultima Ratio for origin criteria:
EU-origin requirements should only be a last resort – time-limited, clearly defined, low in bureaucracy, and WTO-compliant. - "Made with Europe" instead of "Made in Europe":
The cooperative approach must be continued, adhering to existing trade agreements and WTO commitments. - Thresholds aligned with reality:
Requirements, quotas, and transition periods should be based on the actual supply base and regularly reviewed. - Ensure proportionality in foreign investments:
The new regulations for Foreign Direct Investment must be clearly delineated from the existing EU examination regime, avoiding duplicate procedures. - Improve Industrial Acceleration Areas:
The "Baseline Permit," authorising industrial activities in the new acceleration zones, must provide real relief and include environmental impact assessments for future projects. - Evidence-based approach:
Before adopting new interventions, existing measures (e.g., from the Net-Zero Industry Act) should be evaluated first.
Download
A detailed evaluation of the measures proposed in the IAA from the perspective of the commercial economy is available in the DIHK position paper on the topic:
- Download
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Industrial Accelerator Act (IAA)
DIHK position statement of 22 May 2026 on the European Commission's Industrial Accelerator Act (IAA)
- Information
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File format: PDF (accessible)
File size: 403 KB
Status of: June 2026
Page count: 19 pages
- Relevant in topic:
- Economic and Fiscal Policy
- Key areas:
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- Industry
- Foreign Trade
Released 22.05.2026
Modified 17.06.2026
Contact
Dr. Susanne Gewinnus
Director Industry and Research Policy
Katharina Neckel
Director Law of International Trade, Trade Facilitation
Thorben Petri
Director European Economic Policy