EU member states are negotiating with a view to providing a coordinated response to concerns on the impact of the US Inflation Reduction Act on European businesses, claiming that it discriminates unfairly against production outside of the United States.
Currently a number of options have been suggested, including a new foreign subsidies regulation and procedures such as WTO complaints to challenge the USIRA incentives, but this risks that trade tensions intensifying.
Other options include relaxing state aid rules in the EU to allow incentives that compete with the USIRA or creating a European sovereignty fund which would allow equal access for all member states and subsidising key industries. The European Commission has also proposed a green deal industrial plan as a compromise package which includes various tax breaks and incentives for green industry.
EU member states are negotiating with a view to providing a coordinated response to concerns on the impact of the US Inflation Reduction Act on European businesses, claiming that it discriminates unfairly against production outside of the United States.
Currently a number of options have been suggested, including a new foreign subsidies regulation and procedures such as WTO complaints to challenge the USIRA incentives, but this risks that trade tensions intensifying.
Other options include relaxing state aid rules in the EU to allow incentives that compete with the USIRA or creating a European sovereignty fund which would allow equal access for all member states and subsidising key industries. The European Commission has also proposed a green deal industrial plan as a compromise package which includes various tax breaks and incentives for green industry.
