The European Union is developing an updated model for supporting industry and localizing production, which opens up new opportunities for Ukraine to integrate into EU supply chains.
This is reported by Finway
EU Strategic Course: Strengthening Its Industrial Base
The EU is preparing to implement the “Industrial Accelerator Act,” aimed at strengthening production capacity, localizing supply chains, and enhancing economic security. The main tools will be support for domestic production, simplifying the launch of industrial projects, and reorienting towards local suppliers.
According to the European Commission, the share of industry in the EU’s GDP has decreased from 17.4% in 2000 to 14.3% in 2024. The new strategic approach involves a shift from the traditional open market model to a policy of active industrial development. For Ukraine, which has candidate status for EU membership, this creates conditions to move beyond the role of a raw material supplier and join European supply chains on an equal footing.
Public Procurement, Quotas, and Development of Industrial Clusters
As part of the initiative, the EU plans to implement “made in the EU” requirements in public procurement and support programs, with a particular focus on energy-intensive industries, the automotive sector, zero-emission technologies, battery production, solar energy, and critical raw materials.
“In fact, the EU plans to use public procurement as a tool to stimulate domestic producers. Since such procurement accounts for about 15% of the EU’s GDP, it could significantly reshape market demand.”
Specifically, quotas are being established: a minimum of 25% of steel and aluminum for construction and infrastructure needs must be produced in the EU, and for concrete and mortars — no less than 5%. Such measures could significantly change the demand structure in the European market.
Another important aspect will be the creation of “zones of accelerated industrial development” — each EU country must designate at least one such zone for concentrating industrial projects in priority sectors. For Ukraine, which is preparing for large-scale post-war reconstruction, this could serve as an example for forming its own industrial clusters with access to energy resources, logistics, and simplified procedures.
Additionally, the initiative includes the establishment of a single digital “window” for obtaining permit documentation, as well as strengthening control over foreign investments in strategically important sectors — such as battery production, electric vehicles, solar energy, and critical raw materials. This is part of a broader EU strategy to reduce dependence on China.
Final approval of the “Industrial Accelerator Act” is expected no earlier than mid or late 2027, as discussions in the European Parliament and the EU Council are still ahead.