With our key messages on the Industrial Accelerator Act (IAA), we assess the European Commission’s proposal. The IAA addresses key challenges facing European industry and introduces new policy approaches. At the same time, significant implementation risks remain, particularly regarding demand-side measures, foreign investment provisions, permitting procedures and other key regulatory elements. A practical and business-friendly design that avoids additional bureaucracy will be crucial. While the IAA can be an important element of industrial policy, it cannot substitute for the fundamental improvements in framework conditions that are needed to strengthen Europe’s competitiveness.