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Somewhat misleading title: The “Inflation Reduction Act”, for which majority leader Chuck Schumer from the Democrats is campaigning, is primarily intended to push massive investments in climate protection projects.
In Europe, this not only causes jubilation.
Photo:
IMAGO/Allison Bailey / IMAGO/NurPhoto
On the one hand, it is good news that US politicians finally want to take decisive action against climate change.
On the other hand, the billion-dollar project launched by US President Joe Biden, officially called the “Inflation Reduction Law”, is also fueling European concerns.
Take Robert Habeck, for example: A few days ago, the Federal Minister of Economics warned in the Handelsblatt against "oversubsidization that will not do any good for a common economic playing field with Europe".
It is therefore necessary to enter into a dialogue with the US partners (click here for the interview).
What this should look like is now clearer.
The European Union wants to work with the United States in a working group to discuss possible consequences of US President Joe Biden's multi-billion dollar subsidy program.
The EU Commission announced on Wednesday that the new "task force" would deal with the "specific concerns" of the EU in connection with the inflation reduction law.
Brussels had criticized the Washington plans as distorting competition.
Are European companies moving to the USA?
Among other things, the US law provides for billions in investments in renewable energy and tax breaks for electric cars and batteries manufactured in the USA.
In this context, the car manufacturer Tesla had declared that it would reconsider its plans to build a battery factory in Grünheide, Brandenburg.
Federal Economics Minister Habeck calls for a “strong response” to the subsidy program at European level.
"Companies are lured from Europe to the USA with these subsidies," says Habeck.
France's Economics Minister Bruno Le Maire was also "very concerned" about the threat of competitive distortions in transatlantic economic relations.
On Tuesday, the head of cabinet of EU Commission President Ursula von der Leyen, Björn Seibert, met US Deputy National Security Advisor Mike Pyle in Berlin and agreed to set up the working group, the commission said.
The first meeting is scheduled to take place next week.
beb/AFP
