This Week in Manufacturing — Brussels (#29, 2026)
Commission proposes landmark Public Procurement Act; European Innovation Act unveiled; €400m State aid for insulin supply; EU-India FTA sent to Council; €1.1m for Finnish paper workers.
September 07, 2026 to September 13, 2026
Commission proposes landmark Public Procurement Act; European Innovation Act unveiled; €400m State aid for insulin supply; EU-India FTA sent to Council; €1.1m for Finnish paper workers.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• 🤝 EU Council
• 📚 What We're Reading This Week
European Commission
Commission proposes simpler and more strategic Public Procurement rules
The Commission adopted a proposal for a new Regulation to modernise and simplify the EU's public procurement framework, consolidating three directives and multiple sectoral acts into a single rulebook. The new framework introduces three streamlined procedures: open, dynamic, and innovation, and creates an integrated digital procurement marketplace linking Member States’ platforms. The Best Price-Quality Ratio becomes the standard award method, requiring quality criteria of at least 30% (50% for labour-intensive contracts) and allowing for European preference mechanisms in line with international obligations. Security, resilience, and strategic autonomy are emphasised, reflecting recommendations from the Draghi and Letta reports. The Regulation aims to reduce administrative burdens, yielding estimated savings of €650 million annually. The proposal will be negotiated by the Parliament and Council before adoption.
Commission proposes new European Innovation Act to help innovative European ideas grow and compete globally
The Commission proposed the European Innovation Act, targeting improved access to financing for startups and scaleups and instituting a common EU framework for intellectual property valuation. The Act establishes a digital IP marketplace and provides expert support for commercialisation, projected to generate €10.2 billion in annual IP-backed financing. Common procedures for R&D procurement are introduced, facilitating cross-border collaboration and aiming to save €1 billion per year for public buyers. The Act is part of the Startup and Scaleup Strategy and the Competitiveness Compass. Alongside, a Council Recommendation on regulatory sandboxes is proposed to enable controlled testing of innovations, fostering regulatory learning across Member States.
Commission approves €400 million German State aid to enhance insulin supply resilience
The Commission approved a €400 million German measure for Sanofi-Aventis Deutschland GmbH under Article 106(2) TFEU and the 2012 SGEI Framework. The aid compensates Sanofi for a service of general economic interest to ensure resilient insulin supply, including building a new factory at Frankfurt-Höchst by 2032, annual production targets, stockpiling, and prioritising EEA markets. Without this measure, German insulin production would cease, heightening reliance on imports. The Commission found the measure consistent with SGEI rules, with compensation not exceeding net costs, and aligned with public procurement requirements. The decision supports objectives of the proposed Critical Medicines Act.
Commission presents landmark India trade deal to Council for signature
The Commission submitted proposals to the Council for the signing and conclusion of the EU-India Free Trade Agreement. The FTA, once adopted, will eliminate or reduce tariffs on 96% of EU exports to India, saving €4 billion annually and improving market access. The deal will require Council approval, followed by Parliament consent, before entry into force. Commissioner Šefčovič noted the fast-track procedure for implementation amid global uncertainty. Indian authorities are conducting parallel ratification steps.
Commission proposes €1.1 million from the European Globalisation Adjustment Fund to support dismissed paper industry workers in Finland
The Commission proposed mobilising €1.1 million from the European Globalisation Adjustment Fund for Displaced Workers to assist 351 workers in Finland dismissed by Metsä Group, Stora Enso, UPM Communication Papers, and SAPPI. The support includes job-search assistance, training, recruitment incentives, and financial backing for start-ups. The proposal responds to sector challenges including digitalisation and disruption from Russia’s war in Ukraine. Approval by Parliament and Council is required; Finland began supporting affected workers in January 2026, with EGF reimbursement possible retroactively.
A new strategic vision for the outermost regions, strengthening the EU's global reach
The Commission adopted a Communication outlining a new strategic vision and regulatory package for the EU's nine outermost regions under Article 349 TFEU. The package proposes targeted adaptations to EU legislation in agriculture, forestry, fisheries, migration, and taxation, aiming to harness geostrategic potential, boost competitiveness, improve resilience, and promote social fairness. Sectoral legislation, including the proposed review of the EU Emissions Trading System and the Public Procurement Act, will account for regional constraints. The regulatory package will proceed to Council after Parliament consultation.
Press remarks by Vice-President Séjourné and Commissioner Zaharieva on the Public Procurement Act and the European Innovation Act
Vice-President Stéphane Séjourné and Commissioner Ekaterina Zaharieva presented the new Public Procurement Act and the European Innovation Act. Séjourné described a shift from three directives to a single regulation, simplifying procedures and creating a unified digital platform. The Act sets a minimum of 30% quality criteria for contract awards, with flexibility for European preference, especially in strategic sectors. Zaharieva highlighted measures in the Innovation Act: a single rulebook for R&D procurement, IP valuation framework, and regulatory sandboxes. The innovation award criteria require at least 50% for quality and 15% for innovation. Both proposals aim to reduce administrative burden and promote market access for SMEs and startups.
Questions and answers on the EU Public Procurement Act
The Commission published a Q&A detailing the proposed Public Procurement Act, clarifying simplification measures, digital marketplace features, and European preference mechanisms. The Act consolidates procurement rules, reduces administrative burdens, and enhances strategic procurement for environmental, social, and innovation objectives. SMEs benefit from simplified procedures and integrated platforms. The Act introduces new tools for security and resilience, and codifies European preference in line with international obligations. Safeguards against fraud and corruption are reinforced by digital monitoring and data exchange.
Questions and answers on the European Innovation Act
The Commission released a Q&A on the European Innovation Act, outlining new common rules for R&D procurement, EU preference requirements, and digitalisation of procedures. The Act supports pre-commercial procurement, legal certainty for public buyers, and IP-backed financing through a Competence Centre at EUIPO. The Council Recommendation on regulatory sandboxes aims for consistent frameworks, supporting startups and regulatory learning without deregulation. The Act is expected to generate €1 billion savings for public buyers and €25.9 billion in additional profits for economic operators annually.
Statement by President von der Leyen on the derogation for Ukraine to purchase crucial products for Patriot air defence systems
President Ursula von der Leyen welcomed Member States' agreement on a derogation for Ukraine to procure key products for Patriot air defence systems, with €3.2 billion disbursement forthcoming. This builds on €8.4 billion previously allocated under the Ukraine Support Loan. The Commission reaffirmed its commitment to supporting Ukraine and strengthening Europe’s defence posture alongside NATO.
EU Council
Upcoming Competitiveness Council to debate Chips Act 2.0 and merger control guidelines
The Competitiveness Council will meet on 24 September, with internal market and industry ministers scheduled to discuss the Chips Act 2.0 and revisions to merger control guidelines. Ministers will also be informed about legislative proposals including the Industrial Accelerator Act and the European Competitiveness Fund.
Upcoming informal meeting of economic and financial affairs ministers (ECOFIN)
An informal meeting of ECOFIN ministers is set for 18 September 2026.
Upcoming informal meeting of transport ministers
Transport, Telecommunications and Energy Council will convene an informal meeting of transport ministers on 20 September 2026.
What We're Reading This Week
- How ‘Made in Israel’ is powering European security: Israeli defense technology is increasingly underpinning Europe's military capabilities amid rising security concerns across the continent.
