Some smaller EU member nations voice concern over EU’s announced subsidy scheme for clean European companies.

But there is no way around state aid. Otherwise, the EU risks losing central investments into green industrial manufacturing, says German finance secretary in connection to a minister assembly in Brussels on Thursday.

On the agenda is how to counter the US’s enormous Inflation Reduction Act, IRA, an attempt to secure jobs on US soil in renewable energy.

”It is true that controversy sparks between EU members when it comes to subsidies. But we can’t allow other parts of the world to issue subsidy schemes while we are stuck fighting over level playing fields on the internal market. We need Europe to match state aid in other parts of the world,” says Giegold.

French Minister of Industry Roland Lescure agrees that European businesses need ”protection.”

”Europe’s industry needs to be at the forefront of green technology solutions. And we are obliged to help the industry in the global competition. That is essentially what the subsidy discussion is all about,” says Lescure.

However, a string of smaller EU nations worry that Germany and France will make use of economical capacities to support domestic businesses only.

And that could impede internal markets. 

The minor countries opt for subsidies to only be available in an interim period and target specific parts of the industry. Many expect the issue to take up most of the agenda when the EU nations convene at an assembly on March 23-24.

The German minister stresses that he hopes all members come onboard if the EU pledges to only make use of existing means.

”We need to ensure minor member nations with limited resources can access existing EU means and match other countries’ market interventions. But everyone loses from a fruitless debate, especially in lieu of the intensified global competition,” says Sven Giegold.

Without mentioning names, he accuses some of the anti-subsidy voices of hypocrisy.

”It is quite bizarre that some of the member nations actively voicing their resistance towards state aid are the same countries most vehemently calling for lower company taxes,” says Giegold.

He then points to certain EU member nations allowing for companies to ”profit” on ”loopholes” in the internal market.

Even though Giegold refrains from mentioning any specific countries, Ireland has previously been critiqued for luring in multinational companies like Apple by omitting them from paying taxes.

Ireland is among countries fighting for the EU competitiveness to be boosted by other means than state subsidy schemes.