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Turkiye, the EU’s ‘Made in Europe’ drive, and a region on edge after Iran

149 0
01.03.2026

The European Union’s long-delayed “Made in Europe” plan is no longer just an industrial policy debate inside Brussels. It has evolved into a geopolitical inflection point-one that directly affects Turkiye, reshapes supply chains across the Mediterranean, and now unfolds against the backdrop of a dramatically altered Middle East following the reported US-Israeli strike on Iran and the death of Ali Khamenei.

For Ankara, this is not an abstract regulatory adjustment. It is a strategic moment that could determine whether Turkiye remains embedded in Europe’s industrial ecosystem or is gradually pushed to its periphery.

The “Made in Europe” initiative is part of a broader industrial push under the European Commission led by Ursula von der Leyen. Designed to reinforce the bloc’s competitiveness against the United States and China, the plan aims to introduce a stronger “European preference” in public procurement and state aid in strategic sectors-renewables, batteries, vehicles, steel, and clean technologies.

At its heart lies a simple proposition: European taxpayers’ money should support European industrial capacity.

The policy emerges amid intensifying global competition. Washington’s Inflation Reduction Act and Beijing’s heavy state support for industry have placed European firms at a structural disadvantage. The EU’s response is to build industrial resilience, shorten supply chains, and encourage production within its borders.

Yet, as straightforward as this sounds, the implications are complex. The EU’s 27 member states are divided. Countries such as the Czech Republic, Sweden, Ireland, and others have raised concerns about protectionism, competition distortion, and higher consumer prices. Germany-the EU’s industrial powerhouse-has reportedly floated a softer alternative: “Made with Europe,” which would extend eligibility to countries with close trade and economic partnerships.

That distinction-“in” versus “with”-matters enormously for Turkiye.

Over the past two decades, Turkiye has become deeply embedded in European supply chains through nearshoring. In sectors such as automotive manufacturing, machinery, steel, textiles, and defense components, Turkish production capacity complements European design and........

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