RT.com
23 Jan 2023, 23:26 GMT+10
Leaders of the bloc will meet next month to discuss possible responses to what they see as unfair measures
Germany and France have urged the EU to step up its support for domestic industry and unleash massive investments to keep from falling behind American companies in light of the US Inflation Reduction Act (IRA), which they deem discriminatory.
On Sunday, German Chancellor Olaf Scholz and French President Emmanuel Macron met in Paris to discuss how the EU should respond to the controversial American program.
The IRA is a $430 billion package passed by Congress in August that aims to fight climate change, boost social spending, combat inflation and reduce energy prices. It offers generous tax breaks for US companies that invest in clean energy and significant subsidies for domestic electric vehicles, batteries, and renewable energy projects.
The legislation has sparked fears in the EU that the "protectionist" measures may be "discriminatory" towards European companies. The bloc argues that the law doesn't comply with international rules and would unfairly entice companies to shift investments to the US from Europe.
"The first thing is to make sure we as the European Union are not treated worse than immediate neighbors such as Canada and Mexico, for example - that cannot be accepted," Scholz told a joint news conference with Macron at the Elysee Palace. The French president, who earlier slammed the subsidies provision in the IRA as "super aggressive," added that the EU has "a real convergence on the responses we're bringing."
READ MORE: EU should sue US - trade chief
Leaders of the European bloc will meet next month to discuss their options. One of them is to file a complaint with the World Trade Organization (WTO). Also being considered is a support plan that would likely include more lucrative terms for member states to invest in domestic companies. EU funds may also be allocated to struggling enterprises, Bloomberg reported on Monday.
European Council President Charles Michel has proposed a new bond program to help offset financial inequality among EU member states and would allow cash-strapped nations to invest more in green technology.
Meanwhile, a number of EU states, including Denmark, Finland, Ireland, the Netherlands, Poland, and Sweden have warned that retaliatory subsidies could trigger a race among countries and cause a fragmentation in the internal market. More broadly, the measure could split the global economy and push consumer prices higher.
For more stories on economy & finance visit RT's business section
Get a daily dose of Belfast Bulletin news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Belfast Bulletin.
More InformationDUBLIN, Ireland: Dublin Airport was briefly shut down on Friday after a drone was discovered flying within its airspace.Officials diverted ...
LONDON, England: Flybe, a British regional airline, abruptly closed operations on January 28. The airline offered flight to Belfast, Birmingham ...
New Delhi [India], February 4 (ANI): Ministry of Home Affairs (MHA) has sought nominations from all police forces across the ...
Patrick Reed is asking golf fans to move past a rules hullabaloo from last weekend's Dubai Desert Classic that he ...
© Provided by Xinhua Iain Begg described Brexit's effect on the British economy as "incremental, small, bit by bit, drip ...
DUBAI, 30th January, 2023 (WAM) -- Rory McIlroy won his first Rolex Series title with a third victory at the ...
WASHINGTON D.C.: The Biden administration said this week that it will end US COVID-19 emergency declarations on 11th May, nearly ...
WASHINGTON D.C.: In a letter to lawmakers last week, the US Federal Aviation Administration (FAA) said it had put in ...
WASHINGTON D.C.: The Biden administration has stopped issuing export licenses to US companies seeking to ship most items to China's ...
Nearly a year in, the war in Ukraine has cost tens of thousands of lives and brought the world to ...
WASHINGTON D.C.: The US House of Representatives has passed a bill that limits the ability of US Energy Secretary Jennifer ...
BOSTON, Massachusetts: Russian businessman Vladislav Klyushin, who has ties to the Kremlin, has been accused of making tens of millions ...