EU Commission President: US green subsidies call for EU response
The EU must come up with a response to the extensive legislative package adopted by the US, which includes subsidies to green US-based companies, says President of the EU Commission Ursula von der Leyen.
Leyen argues that the major legislative package known as the Inflation Reduction Act (IRA) will skew competition in the green market.
Accordingly, the EU needs ”to rebalance the playing field where the IRA (Inflation Reduction Act) or other measures create distortions,” the EU Commission President remarks.
Several EU nations have levelled criticism against the US Administration’s legislative package.
They view it as anti-competitive and a threat to European jobs - especially in the energy and auto industry.
The US contends that the IRA will help accelerate the green transition in the nation, awarding USD 370bn in subsidies to green US-based companies as well as tax credits to manufacturers of electric vehicles and batteries.
On Sunday, von der Leyen notes that a large task awaits the EU in terms of addressing ”some of the most concerning aspects of the law.”
She adds that the EU will have to ”adjust” its rules to ensure public investments that can power the transition.
On Thursday last week, US President Joe Biden welcomed French President Emmanuel Macron at the White House to discuss the IRA, among other things.
Biden reportedly promised Macron that changes will be made to the plan, with the US President admitting that the proposal is not without issues.
”We agreed to discuss practical steps to coordinate and align our approaches so that we can strengthen and secure the supply chains, manufacturing, and innovation on both sides of the Atlantic,” said Biden last week.
He also said that he will not make any apologies for the large-scale program.
It was never the aim to put US allies in an unfavorable situation, Biden noted to Macron.
This led Macron to acknowledge that the overall intention of the IRA, such as creating jobs and spurring a transition to green energy, is a ”joint goal” that Europe shares as well.
Biden and Macron call off trade spat on green energy
EU accuses US of violating WTO rules with Inflation Reduction Act
