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.

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 the British industry.