European Commission President Ursula von der Leyen said today that the EU should adapt state aid rules in response to the US’s large package of green energy subsidies.
Von der Leyen said the EU should take action to prevent investments being drawn across the Atlantic by the $369 billion Inflation Reduction Act (IRA) that supports US sustainable industries, especially electric vehicles. said that it is necessary to
In a speech in Bruges, Belgium, Chancellor von der Leyen said: “The Inflation Reduction Law should make us think about how to improve the state aid framework and adapt it to the new global environment.” “Competitors’ new aggressive industrial policies require structural answers.”
The IRA program is divided in Brussels, with Internal Market Commissioner Thierry Breton pushing for a more aggressive EU industrial policy in response, while the bloc’s head of competition Margrethe Vestager said: “Tit Back” reaction.
Von der Leyen said some response to the US initiative was needed.
“We need to work together with the United States to solve our challenges in Europe and at the same time reduce our competitive disadvantage,” the European Commission president said.
European Commission officials are trying to persuade the Biden administration to adjust the IRA package so that EU companies are also eligible for US aid.their next chance comes on monday trade technology council meet.
