European legislation that threatens to lock British business out of EU industry could derail a planned reset summit between the bloc and the UK, government sources have said. The “Made in Europe” legislation – formally known as the Industrial Accelerator Act – is designed to curb China’s increasing presence in European industry, but was not on the reset plan agreed by the former prime minister, Keir Starmer, and the European Commission chief, Ursula von der Leyen, in London in May 2025. A follow-up summit was due to be held in July this year, but was cancelled after Starmer’s resignation.
The government is now looking to change the agenda, with one source saying that “Made in Europe should be on the agenda”. It is understood that Hamish Falconer, the new cabinet minister with responsibility for the reset, told the EU’s trade commissioner, Maros Sefcovic, this was the UK’s new priority when the pair met last week. On Tuesday, the trade minister, Anas Sarwar, told a gathering of UK business leaders on Tuesday they needed to let their EU partners know the risks posed by Made in Europe, which will prioritise EU suppliers in key industries including car manufacturing and defence.
Ministers have privately expressed fears that the reset has lost significant momentum since Andy Burnham became prime minister, with his focus on the domestic agenda. Agreements have yet to be reached on several key issues, including what tuition fees will be paid by EU students coming to the UK on a mooted “youth experience” programme. UK sources say that while a food and drink deal and a youth mobility scheme are still on the agenda, the government will not agree to a new summit date until the bigger issues of the Industrial Accelerator Act are included in discussions.
There was talk in London and Brussels that a meeting could be convened on 6 November, but it is understood this could now be pushed backuntil the end of November or beyond. One government source said: “We are willing to negotiate on the things that matter to them, but they have to be able to negotiate the thing that matters to us. Made in Europe should be on the table, definitely.” The UK fears the Made in Europe laws could jeopardise billions of pounds worth of trade if British goods are not categorised as European, locking it out of key contracts on the continent.
France, which conceived the Made in Europe laws, is pushing to have the legislation passed by the end of the year, deepening fears that British manufacturing could be left behind. It is thought that France is sympathetic to the UK’s position, but believes increasing competition from China makes it more important to get the legislation on the books now, and make allowances for third countries later, a process that could take years. One EU diplomat said that there was substantial backing among key member states for the UK to be included in Made in Europe, though not all agreed.
The government’s newly assertive approach could give the UK some leverage in negotiations over concessions on youth mobility, something that is a political priority for many EU capitals. Another UK source said a deal on Made in Europe would be “a good faith demonstration that we can find answers and almost everything else”. A government spokesperson said: “The UK is a close and trusted European partner, committed to our shared security and economic cooperation.
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