On Monday (2 February), Commission Executive Vice-President in charge of competitiveness and industrial strategy, Stephane Séjourné, published an op-ed in several European newspapers calling for the establishment of a “European preference” in public procurement. Written in the context of mounting concerns over Europe’s industrial competitiveness, global subsidy races and growing strategic dependencies, the initiative was launched across the European Union and backed by more than 1,000 senior figures from industry. Its objective is clear: to ensure that European public money supports production and jobs in the EU.
The path to strategic autonomy
For decades, the European Union has been a champion of rules-based international trade. However, the background to this initiative is a sober admission: the global landscape has changed. The world is now characterised by “power-based competition” as the United States and China implement large public subsidies and trade barriers to dominate future markets.
The letter warns that the EU’s traditional openness has become a “structural vulnerability.” Without intervention, the signatories, which include heads of major firms in steel, chemicals, and automotive sectors, fear the EU will lose its industrial base and transform into a “low-value assembly platform.” The proposal introduces a simple but firm principle of conditionality: if a company receives European public money via subsidies or government contracts, it should be required to conduct a substantial part of its production on European soil. This is not a call for bans or tariffs, but a move toward Strategic Autonomy.
Who is backing the call?
While the initiative was spearheaded by Séjourné, it is far from a solo French project. The more than 1,000 signatoriesrepresent the true geographical and economic core of the EU. While France, Germany, and Italy lead the numbers, there is significant representation from Poland, Spain, the Netherlands, and the Nordic countries.
Sectorally, the support is overwhelmingly industrial. Metallurgy and materials, energy and the energy transition, automotive and mobility, chemicals, pharmaceuticals, biotechnology and construction materials dominate the list.
Notably, a limited number of non-European companies, headquartered in countries such as the United States, Japan and South Korea, have also signed the letter. Almost all of them have substantial manufacturing or research operations in Europe. Their participation suggests an acceptance that future access to European public funding will increasingly be linked to local industrial presence.
A strategic inflexion point for the EU
The transition from a political letter to actual law will likely take shape through the upcoming Industrial Accelerator Act. This will formalise how the EU handles Public Procurement. In the near future, winning a government contract for a new wind farm or a fleet of electric buses may depend less on the lowest price and more on how much of the value is created within the EU. Therefore, the key takeaway for businesses is that localisation will no longer be a suggestion, but a requirement for public support.
However, the path forward is not without hurdles. EU Member States remain divided on the exact definition of “Made in Europe,” and there is a delicate balance to strike to avoid excessive red tape or retaliation from trade partners like the US or China.
