On March 4, 2026, the European Commission presented its proposal for the Industrial Accelerator Act (hereinafter the “Act”; “IAA”). This regulation is intended to serve as a central pillar of the new “Clean Industrial Deal” and comes as a response to the findings of the Mario Draghi report, which warned that Europe must radically improve its competitiveness to preserve its economic security.
The primary objective of the Act is to increase the share of industrial manufacturing in the European Union’s GDP to 20% by 2035 (up from current levels of approximately 14%). Furthermore, the IAA aims to make Europe an attractive destination for investment while ensuring that key supply chains—from raw materials to finished technologies—remain within the Single Market.
Key Changes
One of the most significant changes is the introduction of mandatory quotas for products of European origin and a low carbon footprint in public procurement. Effective January 1, 2029, public authorities will be required to prioritize “clean” products in strategic sectors such as steel, aluminum, and the automotive industry.
The European Commission also recognizes administrative burden as a major issue, often serving as a bottleneck for investment. The IAA obliges Member States to implement fully digital permit-granting procedures through a “one-stop-shop” principle. This will significantly shorten the time required to start or expand a business within the EU.
The proposal also envisions the creation of specialized geographic zones known as Industrial Acceleration Areas. Within these zones, strategic projects will benefit from priority status, streamlined environmental assessments, and expedited procedures, facilitating rapid project implementation while accelerating the transition to carbon neutrality.
The EU is also tightening conditions for capital originating from countries with dominant market positions that utilize subsidies to distort the market. For large-scale investments exceeding 100 million EUR in critical sectors such as batteries and electric vehicles, a minimum local employment guarantee of 50% within the EU will be required to prevent technological and economic dependency.
Business Perspectives and Next Steps
For Bulgarian business and industry, the IAA represents both a challenge for adaptation and a massive opportunity. The focus on local supply chains will stimulate demand for European components and materials.
The regulation is expected to enter into force in late 2026 or early 2027.
Our team continues to monitor the development of the legislative process and its impact on the Bulgarian market. For more current legal analysis and updates, you can follow us on LinkedIn.
This summary is for informational purposes only and does not constitute legal advice.
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