Frequently Asked Questions

European Preference is a policy requiring public procurement contracts and subsidised industrial projects in the EU to source a minimum percentage of goods and materials from European producers. It's part of the Industrial Accelerator Act proposed by the European Commission.

The Industrial Accelerator Act is EU legislation published on February 26, 2026 by the European Commission. It introduces European content requirements for public procurement, mandatory low-carbon labelling, and strategic sector designations. European Preference is the commonly used name for the procurement aspects of this law.

The law covers 6+ strategic sectors with varying thresholds: electric vehicles (70% European content), steel in construction (25% low-carbon European), aluminium (25%), plastics for construction (30%), batteries and renewables (strategic sector status with subsidy preference), and cement (mandatory low-carbon labelling).

Yes. The law defines "Europe" as the European Economic Area (EEA): the 27 EU member states plus Norway, Iceland, and Liechtenstein. Norwegian-made products count as "Made in Europe" under the new procurement rules. This was confirmed by PM Støre following discussions with EU Commission President von der Leyen.

No. The UK and Turkey are explicitly excluded from the "Made in Europe" definition. The UK has criticised this exclusion. However, the draft law includes a mechanism for the Commission to designate specific third countries as "equivalent" through delegated acts, so inclusion could potentially happen later.

The Commission proposal was published February 26, 2026. It now enters the EU legislative process where Parliament and Council will negotiate amendments — typically taking 12–24 months. Final adoption and transposition into national law is expected in 2027–2028.

The European content thresholds apply specifically to public procurement (government purchasing) and subsidised projects (those receiving EU industrial support funding). Private B2B and B2C transactions are not directly affected. However, the mandatory low-carbon labelling requirements for steel and cement apply to the broader market.

Start by auditing your supply chain origins, identifying which contracts fall in affected sectors, calculating your current European content percentage, evaluating alternative European suppliers, and monitoring the legislative timeline as thresholds may change during negotiations.

European content refers to the percentage of a product's components or materials that are manufactured within the European Economic Area (EEA). The exact measurement methodology will be defined in implementing regulations, but the draft law specifies that components must be EEA-manufactured and, for sectors like EVs, final assembly must take place in the EEA.

The full text of the Industrial Accelerator Act is available on the European Commission's website following its publication on February 26, 2026. We provide plain-language analysis and summaries on this site to help businesses understand the practical implications.