UK Minister Warns EU Chief of "Collateral Damage" from "Made in Europe" Scheme

Andy Burnham, the mayor of Greater Manchester, plans to caution European Commission President Ursula von der Leyen about the potential negative impacts of the European Union's proposed "Made in Europe" rules, also known as the Industrial Accelerator Act (IAA). Burnham is set to meet von der Leyen during a United Nations summit in New York, where he intends to raise concerns that the initiative could inadvertently harm British manufacturing and supply chains.

The EU's "Made in Europe" proposals aim to prioritize manufacturers within the bloc for public contracts and subsidies, with the stated goal of curbing the influence of Chinese companies in the European market. However, the UK government is apprehensive that these measures could disadvantage British businesses.

Burnham stated that he would argue to von der Leyen that the UK is not the intended target of the policy and that both the UK and Europe face similar challenges, citing the steel industry as an example. "We are making the argument 'we are not your enemies here… we are not the problem'. Made in Europe is dealing with a different problem," he explained. "We are making the argument that 'let's avoid collateral damage'."

This discussion is expected to occur at the UN's annual summit. The "Made in Europe" scheme has yet to be finalized. The EU-UK summit, originally scheduled for this year, has reportedly faced further delays, following Sir Keir Starmer's resignation as prime minister in July.

Burnham also touched upon the UK's relationship with the EU, stating that his immediate priority is to build upon the work done to mend ties. He suggested that rejoining the EU is an issue for "another day," emphasizing the focus on achieving practical agreements that will benefit the British economy and addressing EU requests concerning youth mobility. He noted that while the EU has introduced a concept of "associate membership," which Canada is reportedly being considered for, this option has been made clear as not available to the UK.

Burnham's remarks come after he previously expressed a desire to see the UK rejoin the EU within his lifetime and stated earlier this year that Brexit had been damaging, though re-running those arguments was not advisable at the time. The EU's ambassador to the UK, Jukka Salovaara, recently commented that while "the doors are open" for deeper cooperation with the EU, it is ultimately up to the UK public to determine their ambition for such engagement.