Volkswacht Bodensee - EU battle over how to define 'Made in Europe'

The EU executive unveiled a proposal in March to force companies in strategic sectors like cars and clean energy to buy European if they want public money.

Brussels wants looser rules covering products made by some partners -- potentially including dozens of nations linked to the EU through free trade agreements, customs unions or public procurement deals.

The aim is to preserve trade ties with Europe's allies while avoiding disruptions to supply chains.

France believes it is too broad however.

"Europeans' public money should support European workers and European factories," French Industry Minister Sebastien Martin said on Thursday before a meeting with his EU counterparts in Brussels where the issue will be raised.

France's position puts it at odds with Germany, Belgium and several other EU countries, which champion the idea of "Made with Europe".

So more manufacturing in Europe, while still relying on trusted partners like Norway, Switzerland and Canada, German Economy Minister Katherina Reiche said.

Her Belgian counterpart echoed her call. "We don't want a closed list, but an open one that includes all countries that play by the rules," David Clarinval told AFP, giving Britain, Switzerland, Canada and South Korea as examples.

- 'Too early to say' -

The proposal will only become law after negotiations between the European Parliament and EU capitals but first they need to agree on their position.

Ireland, which holds the EU's rotating presidency until the end of the year, is racing to get the 27 nations to agree on a common approach within weeks.

A compromise that is being explored would tailor the definition of "Made in Europe" to each sector -- or even each product. The hope is that it would be easier to get an agreement.

"In some industries, especially cars, we are fortunate to have an integrated value chain across Europe," French minister Martin said. "In others, the value chain may be more open."

Poland's Michal Baranowski said his country supported a "balanced approach", but it was "too early to say" if countries like Britain, Australia, Japan or Switzerland would be included or not.

He warned the new rules should not "create a bureaucratic nightmare for our companies that should be supported rather than additionally burdened".

Britain has already voiced concern about its possible exclusion, while Japanese carmarkers have also questioned the impact of the rules.

A similar battle over the definition is taking shape in the EU parliament.

German EU lawmaker Anna Cavazzini, and French lawmakers Christophe Grudler and Pierre Jouvet -- who will spearhead the law through parliament and lead talks with EU states later -- are due to present their amendments on Monday.

R.Kloeti--VB