Fending off the subsidy race: Europe’s plan against the USA threatens to backfire

The EU is increasingly nervous about responding quickly to the multi-billion dollar US subsidy package. Sie plant, die Regeln zu lockern, nach denen sie Zuschüsse und Kredite an Firmen in den Mitgliedsstaaten vergibt. In doing so, it risks jeopardising the internal market.

The spectre on the other side of the Atlantic keeps Europeans on tenterhooks. The Inflation Reduction Act (IRA), a several hundred billion dollar subsidy package from the US, raises fears among them that domestic industry could migrate to the United States. The EU Commission therefore wants to strengthen the European market for green technologies with subsidies. It is working to temporarily relax the state aid rules under which it distributes grants and loans to firms in member states. However, there is a risk in this plan. European states are then threatened not only with a subsidy war with the USA, but also with each other. The internal market could be shaken.

Read the whole article here: https://www.n-tv.de/politik/Europas-Plan-gegen-die-USA-droht-nach-hinten-loszugehen-article23973180.html