Made in EU rules set a 5% baseline, but software remains excluded

The European Commission unveiled the Industrial Accelerator Act on 4 March 2026 (COM(2026)100), accompanied by an impact assessment and three staff working documents.

Made in EU rules

establish a minimum ↑ 5% domestic content threshold for strategic sectors, yet the draft conspicuously omits any reference to software. Policy‑makers argue the measure will boost capacity and accelerate decarbonisation across the bloc. In reality, the proposal remains just that – a proposal, not binding law, and its provisions will need parliamentary endorsement before taking effect.

“Excluding software undermines the digital transformation agenda,” a senior industry source told Reuters.

The framework targets high‑impact areas such as renewable energy, advanced manufacturing, and transport, seeking to fast‑track investment while aligning with the EU’s Green Deal. Critics from Bloomberg warn that the 5% floor may be too low to spur genuine reshoring, especially when tech components are sourced abroad. The Commission plans a stakeholder consultation over the next six months, after which the European Parliament and Council will negotiate the final text.

Words by: Sebastian Thorne

European Affairs Analyst