UK courts Germany, Italy and Netherlands to block French ‘Made in Europe’ procurement rules
The UK has opened a targeted diplomatic campaign to persuade Germany, Italy and the Netherlands to oppose a French‑led draft that would increase local-content requirements in EU public procurement under a broader Made in Europe agenda. London warns the measure could amount to de facto trade barriers by narrowing eligibility for public contracts and excluding non‑EU suppliers, reducing market access for British bidders that are integrated into continental supply chains. Paris frames the proposal as a way to shore up regional production resilience and protect critical supply lines from external shocks, including recent tariff moves and geopolitical disruption. EU capitals are split: some member states see stronger industrial safeguards as prudent for strategic sectors, while others view the draft as a protectionist departure from Single Market norms. Procurement authorities would face tougher origin verification, new certification regimes and stricter local‑value thresholds, raising compliance costs and administrative burdens—especially for SMEs and firms with fragmented supply chains. Industrial sectors most exposed include automakers (where electrification relies on cross‑border parts and batteries), technology and clean‑tech manufacturers, which could confront reconfigured sourcing, delayed projects or higher production costs. The British government is seeking technical amendments such as carve‑outs for existing projects, grandfathering clauses and precise rules of origin to avoid sudden loss of eligibility for contracts and subsidies. Financial markets and investors may reprice risk for cross‑border projects if fragmentation looks likely, potentially shifting investment decisions toward on‑shore locations inside the EU to secure subsidy or procurement eligibility. Diplomacy has so far emphasized quiet, technical engagement with likely allies rather than public confrontation, focused on tightening the draft’s language to prevent broadly exclusionary thresholds. The dispute touches WTO non‑discrimination commitments, EU procurement directives and post‑Brexit UK‑EU arrangements, raising the prospect of legal reviews and challenge if the measure is adopted without compromise. If unresolved, expect a measurable fall in UK participation in EU public tenders and a possible long‑term impact on where firms locate future investment; if the UK secures concessions, new rules could still preserve supply‑chain resilience while keeping markets open.
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