“Buy European” must not come at workers’ expense

This week, the European Commission presented its proposal for an Industrial Accelerator Act, a new initiative aimed at strengthening Europe’s industrial base and accelerating investment in certain strategic sectors and technologies, notably net-zero technologies as well as energy-intensive industries, and the automotive supply chain.

The proposal is a response to the realities of an increasingly challenging global environment. Geopolitical tensions, fragile supply chains and growing international competition are forcing Europe to rethink its industrial strategy. Maintaining the capacity to produce essential technologies and materials — from clean technologies to advanced manufacturing — is now a strategic imperative.

The proposed Act aims at directing investments in strategic sectors, supporting clean technology deployment, stimulating demand for European-made low-carbon products, and facilitating industrial modernization through regulatory simplification and stronger coordination of public investment. As a Commission proposal, it now enters the legislative process, where the European Parliament and the Council will shape its final form.

Industrial policy must remain socially anchored

CESI welcomes the ambition behind this initiative. Strengthening Europe’s industrial capacity is both necessary and timely.

At the same time, industrial policy must remain firmly anchored in Europe’s social model. Competitiveness is not built on capital, technology or regulation alone – it is built on people. Workers are the driving force behind innovation, productivity and sustainable transformation. For Europe to lead the green and digital transitions, those transitions must deliver quality jobs, safe working conditions and fair wages. That is not a constraint on competitiveness – it is its foundation.

Strategic autonomy and the “Buy European” debate

The Act sits within a broader discussion about strengthening Europe’s strategic autonomy, including calls for a stronger “Buy European” or “Made in Europe” approach.

In a world where major economic powers actively support their domestic industries, Europe’s determination to reinforce its own industrial ecosystem and reduce strategic dependencies is understandable and legitimate. Public procurement, investment programmes and industrial policy instruments can play a role in stimulating demand for European products and strengthening domestic value chains.

A European preference, however, must be implemented carefully. It should serve Europe’s broader economic and social objectives – not function as a simple protectionist instrument, and certainly not at the expense of workers’ rights or social standards.

For CESI, any “Buy European” approach must therefore be accompanied by strong social conditionality. Public funds and public procurement should prioritise companies that respect labour law, honour collective agreements and provide fair working conditions.

Public investment must create public value

Industrial transformation will require substantial public support, and the Industrial Accelerator Act rightly recognises this. When public resources are mobilised in support of industry, they must also generate public value – strengthening European industry while also supporting workers, communities, and fair competition. Public spending must not become a vector for social dumping or precarious employment.

Public procurement is one of the most powerful instruments through which that principle can be applied. With public authorities across Europe spending more than €2.6 trillion each year, procurement policy carries significant responsibility for shaping labour standards and economic development. Social conditionality must therefore be built into these instruments from the outset – ensuring that public investment supports quality jobs, respect for labour law and collective agreements, and sustainable growth.

Social dialogue is essential for successful transitions

Industrial transformation will inevitably reshape sectors, production processes and employment patterns. Managing these changes well requires the active involvement of those most affected.

Trade unions and social partners must therefore play a central role in shaping industrial transitions – not as a consultative formality, but as full participants in the design and implementation of change. Strong social dialogue helps anticipate restructuring, supports workers through transitions, and ensures that workers are equipped with the skills required by new technologies and industries. The evidence is consistent: economies with robust social partnerships and well-functioning public services demonstrate greater resilience and sustained productivity growth.

Competitiveness and social progress must go together

Europe clearly needs to accelerate its industrial transformation. Global competitors are investing heavily, and the green transition demands rapid structural change.

CESI’s position is that acceleration must be built on Europe’s social foundations, not pursued at their expense. Industrial policy, social policy and competitiveness policy are not in tension – they are mutually reinforcing.

If the Industrial Accelerator Act succeeds in strengthening Europe’s industrial capacity while also promoting quality jobs, fair competition and robust social dialogue, it can make a genuine contribution to a European economy that is not only more competitive, but more resilient, inclusive and sustainable.

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