European legislation intended to bolster EU industry and limit China’s growing footprint risks undermining recent efforts to reset relations between the United Kingdom and the European Union, UK government sources have warned.
The measure, commonly referred to as the “Made in Europe” law and formally known as the Industrial Accelerator Act, is designed to strengthen the bloc’s industrial base and reduce strategic dependence on external actors. Government sources say aspects of the proposal, as currently drafted, could exclude or disadvantage British businesses seeking access to the EU single market.
Officials told reporters the legislation was not part of the reset plan agreed between the former prime minister, Keir Starmer, and European Commission president Ursula von der Leyen during their May 2025 meeting in London. Because it was not foreseen in those discussions, sources say the act needs to be addressed before a planned summit intended to deepen co-operation between the UK and the EU.
Those sources warned that unless the implications for British firms are resolved, the Industrial Accelerator Act risks derailing the intended summit and complicating wider efforts to normalise economic and political ties. The government has signalled it will raise the issue in further talks with EU counterparts, saying the potential impact on UK industry must be clarified and mitigated.
The dispute underscores how domestic EU policy aimed at strategic autonomy can have wider diplomatic consequences for neighbouring partners. UK officials are now preparing to engage with European institutions to seek assurances that British companies will not be unfairly excluded as the legislation progresses through the EU decision-making process.
Both sides have so far avoided public escalation, but the developing disagreement adds a new element to an already complex relationship and will be watched closely by industry groups on both sides of the Channel.