Germany and France at odds over 'made in Europe' rule

France and Germany continue to be at odds over controversial plans for a "made in Europe" rule to boost critical industries with public money and over how countries outside the bloc should be included in the plans.

"Europeans' public money must go to European workers and European factories," French Industry Minister Sébastien Martin said in Brussels on Thursday on the sidelines of a meeting of EU ministers in charge of competition.

Martin said that where value chains were not "100% European" a broader definition could be considered.

"But for certain industrial sectors – and I am thinking in particular of the automotive industry – we are fortunate on the European continent to have an integrated value chain capable of manufacturing cars," he said.

The plans aim to reverse the EU's industrial decline by channelling more public funding in domestic manufacturing.

Capitals would only be allowed to support critical sectors like cement or clean tech financially if their products were produced to a certain extent in Europe.

German Economy Minister Katherina Reiche reiterated Berlin's call for a less restrictive framework and stressed that also the EU's closest partners beyond the borders of the European continent should be included.

"In other words, manufacturing in Europe, but in collaboration with our trading partners – with Norway, with Switzerland, but also with partner countries such as Canada," said Reiche in Brussels.

A representative of German trade union IG Metall, Jürgen Kerner, sharply criticized Berlin's move in a statement.

"The Federal Government, under the leadership of the Ministry for Economic Affairs, not only wants to delay and water down the European regulation; it apparently wants to torpedo effective regulations designed to strengthen European industry straight away," he said. "There is no other explanation for the fact that, contrary to earlier statements, the geographical scope is now even to be extended."

Earlier this week, British Prime Minister Andy Burnham warned in talks with European Commission President Ursula von der Leyen that the EU's so-called Industrial Accelerator Act could cause "collateral damage" to British industry.

Following the ministers' discussions, the Irish business minister, Peter Burke, said there were signs of an agreement being reached by early December.

"There are already some points emerging that we can bring together to formulate a new, revised text," said Burke. Ireland currently holds the Council presidency.