Standfirst: The UK’s minister for European relations, Hamish Falconer, has warned that excluding British companies from the European Union’s proposed “Made in Europe” industrial policy could disrupt shared supply chains. London is seeking inclusion before an expected EU-UK summit later this year, while governments remain divided over how far the scheme should extend to non-EU partners.
The warning adds a new dimension to the latest EU-UK trade discussions, as Brussels considers how to give European manufacturers an advantage in public procurement without creating further barriers with Britain.
UK raises concerns over proposed EU industrial rules
Falconer, who is also the UK’s chief negotiator with Brussels, made the comments during talks in Strasbourg with EU officials, including Trade Commissioner Maroš Šefčovič. He argued that keeping supply chains open was in the interests of both the EU and the United Kingdom.
The proposed policy forms part of the European Commission’s Industrial Accelerator Act. Its objective is to strengthen European industry and reduce exposure to unfair competition from outside the bloc, including competition linked to state support and industrial subsidies.
One element under discussion is a preference for European manufacturers in public contracts. The central question for the UK is whether British businesses would qualify for the same treatment as companies based inside the European Union.
Why the definition of “European” matters
The debate is not simply about market access. It also concerns how the EU defines European production, supply chains and rules of origin.
Supporters of a wider approach argue that modern manufacturing depends on cross-border networks involving both EU and UK firms. A strict EU-only model, they say, could make it harder for companies to compete, particularly in sectors that rely on components, investment and specialist suppliers on both sides of the Channel.
Falconer said industries had made the strongest case to him for maintaining close links. He pointed to the importance of the UK as an EU trading partner and to the close relationship between British and continental manufacturing.
- The EU wants to support domestic industrial capacity.
- The UK wants British companies included in the new procurement framework.
- Member states disagree over whether access should depend on reciprocal treatment.
- The final model could affect supply chains, public contracts and future EU-UK trade relations.
Member states divided over Britain’s possible inclusion
France has supported a more restrictive approach, reflecting a preference for prioritising companies established within the EU. Germany is viewed as more open to extending access to trading partners if those countries provide comparable opportunities to European businesses.
That approach could involve applying rules of origin to EU partner countries and linking access to reciprocity. In practical terms, British companies might receive access to parts of the scheme if the UK offered EU firms equivalent treatment in its own public procurement market.
No final agreement on the UK’s participation has been announced. Discussions have accelerated since Prime Minister Andy Burnham’s government took office in July, but the outcome remains uncertain.
EU-UK summit could become a deadline for progress
Negotiators are working towards an EU-UK summit expected to take place in Brussels before the end of 2026. Falconer suggested that the British government is prepared to discuss concessions, describing the issue as part of a wider effort to recognise a shared European industrial base.
The summit was initially planned for July but was postponed after former Prime Minister Keir Starmer announced his resignation. The meeting is expected to address several areas of the relationship, including agri-food trade, electricity markets and youth exchanges.
For the UK, gaining access to the “Made in Europe” framework would have significance beyond one procurement policy. It would signal whether Brussels and London can rebuild practical cooperation after Brexit without reopening the question of EU membership in the immediate term.
London signals ambition for a closer relationship
Falconer also described a shared desire to bring the UK closer to the European Union. His comments followed Burnham’s suggestion that Britain could eventually consider rejoining the bloc, although no formal application or process to rejoin has been announced.
The government’s immediate focus remains on improving the existing relationship. Falconer said ministers wanted an ambitious package of agreements at the forthcoming summit, while acknowledging that the political context had changed following Burnham’s comments on the UK’s long-term future.
Any move towards closer cooperation will face domestic political constraints. Several ministers in the Burnham government represent constituencies that voted to leave the EU in the 2016 referendum. That makes the language of closer ties politically sensitive, even where specific proposals concern trade, energy or mobility rather than membership.
What happens next?
The European Commission and UK officials will continue negotiations before the expected summit. The main issues to watch are:
- Whether the Commission proposes a formal mechanism for including selected non-EU trading partners.
- Whether EU member states agree on reciprocal market-access conditions.
- Whether Britain is willing to offer concessions in return for participation.
- Whether the summit produces agreements on procurement, agri-food, electricity markets or youth exchanges.
Until those discussions are concluded, the “Made in Europe” initiative remains a proposed industrial policy rather than a settled arrangement covering British companies.
Why this matters for Ireland
Ireland has a direct interest in the outcome because it maintains extensive economic and supply-chain links with both the European Union and the United Kingdom. Changes affecting public procurement, manufacturing inputs or cross-border trade could have consequences for Irish businesses that operate across the EU-UK market.
However, the precise impact will depend on the final legal design of the scheme and on any agreement reached between Brussels and London. No new rule affecting Irish companies has been confirmed as a result of the current talks.
Conclusion
The dispute over the proposed “Made in Europe” policy is becoming a test of the post-Brexit relationship. The UK argues that excluding British firms could weaken shared European supply chains, while some EU governments favour stronger protection for companies based inside the bloc. The next major step will be whether negotiators can turn those competing positions into an agreement before the expected EU-UK summit.
