Britain’s steel industry could get a reprieve from an unlikely source: a defence ministry plan for floating drydocks, a century-old naval technology the US Navy pioneered. Yet this lifeline looks modest when measured against the industrial ambitions now taking shape across the European Union.
After the Cold War ended, European strategic industries prospered amid decades of stable global trade and successive EU expansions. Boardrooms grew comfortable. Institutions relaxed.
Meanwhile, China transformed into the world’s manufacturing powerhouse. The shock of China’s push to dominate global car markets, Donald Trump’s tariff wars and Vladimir Putin’s aggression in Eastern Europe finally jolted Europeans into action.
The EU has responded with “Made in Europe,” an umbrella strategy to boost industrial competitiveness against American and Chinese giants. At its heart sits the proposed Industrial Accelerator Act, which targets raising manufacturing’s share of EU GDP from 14.3% in 2024 to 20% by 2035.
Key provisions demand European-origin and low-carbon requirements for public procurement and state support in sectors like electric vehicles, steel, aluminium and clean technology. Some thresholds appear demanding. The direction, however, remains unmistakable: strengthen Europe’s manufacturing base, build industrial scale, spur innovation and keep investment inside Europe.
The proposal also attaches conditions to certain major foreign investments in strategic industries, aiming to secure jobs, technology transfer and economic value within Europe. Horizon, the EU’s massive research programme, will play a central role. Britain rejoined Horizon in 2024 but still sits outside key decisions about its future direction.
For a bloc built on lowering trade barriers, this interventionist turn marks a profound shift. Brussels believes it has little choice. Either it creates conditions favourable to its own industries, or it watches America retreat from free trade leadership while China marches toward industrial dominance.
British industry has reason for concern. The EU remains the UK’s largest export market, purchasing £358 billion of British exports in 2024, 41% of the total.
Germany wants major trading partners included in the broader framework. France argues for a stricter EU-only approach. Spain proposes a three-tier model where Britain could land in the third category. The details remain unresolved.
Time, economic reality and geopolitical change do not favour Andy Burnham. Britain’s isolation is exposing systemic economic weaknesses. The country needs more friends. Britain’s future as a successful trading nation may ultimately depend on deeper engagement with Europe, even when that means working alongside political forces not entirely to its liking. It is a hard new world.
