Economy & Policy

France Moves to Shut UK Out of EU's 'Made in Europe' Policy

France wants the UK excluded from the EU's 'Made in Europe' policy, warning British firms could lose ground in supplying Europe with EVs and low-carbon tech.

By Nathan Brooks

2 min read

Updated

France says EU’s ‘Made in Europe’ law should not include the UK
France says EU’s ‘Made in Europe’ law should not include the UKEuropean Parliament / Openverse

What's News

  • France is pushing to exclude the UK from the EU's 'Made in Europe' policy designed to curb Chinese competition
  • "If you're not in the internal market, you don't get the same protection," a French minister said
  • Andy Burnham raised the plans with European Commission president Ursula von der Leyen on the sidelines of the UN general assembly
  • Exclusion could cost British companies contracts to supply EU states with low-carbon technologies and electric cars

France is leading a push to exclude the UK from the EU's "Made in Europe" policy, a move that could cost British companies access to European supply contracts for low-carbon technologies and electric cars.

The policy, designed to curb Chinese competition, is at the center of a brewing dispute over whether post-Brexit Britain qualifies for its protections. France's position is blunt.

"If you're not in the internal market, you don't get the same protection," a French minister said.

The stakes for London are considerable. The "Made in Europe" framework could determine which companies win contracts to supply EU member states with low-carbon technologies and electric vehicles — two of the most heavily subsidized industrial sectors in Europe. If British firms are locked out, they would compete at a structural disadvantage against rivals based inside the bloc.

The issue surfaced this week on the sidelines of the UN general assembly, where Greater Manchester mayor Andy Burnham raised the plans in a meeting with European Commission president Ursula von der Leyen. The encounter underscores how the debate over Britain's economic relationship with the EU has moved beyond tariff questions into the mechanics of industrial policy.

Paris draws a bright line between membership and proximity. The single market, in the French view, is the qualifying condition for the benefits of "Made in Europe" — a position that treats the UK's departure from the internal market as disqualifying, regardless of any future alignment on standards or regulation.

For British suppliers of electric vehicles and low-carbon technology, the French stance raises a concrete commercial risk. EU governments are among the world's largest buyers of clean-energy infrastructure, and procurement rules that favor internal-market producers would push UK-based manufacturers down the queue.

The intervention also tests the UK government's approach to European relations. Since Brexit, London has sought piecemeal arrangements — on trade, on research, on defense — without rejoining the single market. France's position suggests those arrangements may carry a ceiling: the closer EU industrial policy gets to direct market protection, the harder it becomes for non-members to share in it.

Von der Leyen's response to Burnham has not been disclosed, and the Commission has yet to finalize the design of the "Made in Europe" framework. But with France pressing the exclusion case at ministerial level, the burden now shifts to Brussels to decide whether the policy's protections follow market geography or something broader.

The outcome will shape more than procurement lists. It will signal whether the EU's industrial strategy — built partly as a defensive wall against Chinese competition — has room for a large European economy that chose to stand outside the bloc's core market.

Source: The Guardian Business

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Nathan Brooks

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News editor covering marketplaces and e-commerce at Business Bearings.

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