3 March 2026 – The newly leaked draft of the Industrial Accelerator Act (IAA) once again favors major European corporations, disadvantages SMEs, and unmistakably bears a French signature. German crude steel production is rising – yet the industry continues to downplay it.
IAA: A Regulation for Big Industry
The latest leaked draft of the Industrial Accelerator Act (IAA) once again tilts the playing field toward large European corporations, disadvantages small and medium-sized enterprises, and clearly reflects French industrial policy priorities.
SMEs as Losers Under Procurement Rules
Under the draft, non-EU investors could be excluded from public procurement procedures if they hold direct investments exceeding €100 million in so-called “strategic sectors.”
Domestic manufacturers with ownership participation from companies based in third countries without EU trade agreements could also be systematically excluded from tenders.
What may sound like security logic primarily affects SMEs in practice: Companies that do not have the same ease of access to capital as large corporations.
In addition, the draft introduces new documentation requirements, certification costs, and administrative burdens. Large enterprises with extensive compliance departments can absorb these requirements. SMEs cannot. Regulation that demands identical compliance from structurally unequal actors does not create fair markets – it cements existing power structures.
And once again, the urgently demanded reduction in bureaucracy is nowhere to be found.
Green Steel and Questionable CO2 Figures
The IAA’s provisions regarding the origin classification of “low-carbon steel” raise a fundamental question: who is actually supposed to supply this steel?
The CBAM default values assign more than 9 tonnes of CO2 emissions to certain slab-producing countries for stainless steel. Figures that are difficult to reconcile with industrial reality.
Has the Commission simply invented these numbers? Much suggests that essential calculation bases of the carbon border adjustment mechanism (CBAM) rest on unstable foundations.
A French Blueprint and an Inadequate Impact Assessment
The proposal is once again driven by Commissioner Stéphane Séjourné, a French national and close ally of President Emmanuel Macron.
The IAA’s publication has already been postponed several times, not least due to substantial criticism of its content. The accompanying impact assessment was flagged as inadequate in its first revision-a pattern previously seen with steel quotas.
In recent months, France has consistently advanced initiatives favouring state-backed industrial structures while weakening the SME-based industrial fabric prevalent across much of Europe. The IAA fits neatly into this pattern: a national interest project dressed in European language.
Crude Steel Production Rises: But the Industry Downplays It
Germany produced significantly more crude steel in January 2026 than in the previous year. Instead of framing this as a recovery signal, the industry association moved quickly to relativize the increase.
Up 15% – And Still “No Reason for Optimism”?
Crude steel production in Germany rose by 15% year-on-year in January 2026 – a clear upward signal. Yet the German Steel Federation emphasised that output remains approximately 5% below the ten-year average.
What goes unmentioned: for a sector characterised by pronounced cyclical swings and extreme price volatility, a ten-year average is a highly questionable reference metric. It encompasses boom years and crisis quarters alike and says little about the current situation.
As an analytical benchmark, it is weak. As a tool for dampening optimism, it appears effective.
Slab Imports at Record High: EU Mills Buy Crude Steel Instead of Producing It
At the same time, final EU import data for semi-finished steel in 2025 reveal a structurally significant development: European steel mills imported nearly 10 million tonnes of crude steel in the form of slabs last year. An increase of more than 35% compared to the previous year. Import volumes even exceeded 2019 levels, the last pre-crisis year.
This raises obvious questions. If EU steel producers rely on imported slabs at such scale, this does not merely reflect demand dynamics. It also indicates where European production capacities are reaching their limits.
This debate, however, remains conspicuously absent from the industry’s public communication – while the association once again functions as a compliant amplifier of political objectives.
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