RT.com
24 Nov 2022, 23:44 GMT+10
European industry may lose to American firms that receive direct support, the news outlet reports
The EU is developing a major subsidy push to prevent European companies from being wiped out by US rivals that are receiving government aid, Politico reported on Tuesday, citing sources.
Two senior EU officials told the news website that the dispute concerns the so-called Inflation Reduction Act, a $369 billion industrial subsidy scheme, rolled out by US President Joe Biden to support green industries.
According to the report, EU officials fear that businesses will now face almost irresistible pressure to shift new investments to the US rather, away from Europe.
"Europe is facing a double hammer blow from the US," Politico reported, noting that the European Commission and member states "have realized they need to act quickly if they want to prevent the Continent from turning into an industrial wasteland."
The sources said Brussels is currently working on an emergency scheme to funnel money into key high-tech industries. This would be a 'European Sovereignty Fund,' to help businesses invest in Europe and meet ambitious green standards, they explained.
The EU reportedly had to act "extremely quickly" as companies are already making decisions on where to build their future factories, for everything from batteries and electric cars to wind turbines and microchips.
The unnamed officials gave another reason for Brussels to respond rapidly - to avoid individual EU countries going it alone in splashing out emergency cash.
Meanwhile on Monday, EU industry chief Thierry Breton warned that Biden's new subsidy package poses an "existential challenge" to the European economy, stressing it was now a matter of utmost urgency to "revert the deindustrialization process taking place."
The Inflation Reduction Act could particularly hurt EU's car making nations, such as France and Germany, as it encourages consumers to "Buy American" when it comes to electric vehicles.
"With a diplomatic solution seeming unlikely and Brussels wanting to avoid an all-out trade war, a subsidy race now looks increasingly likely as a contentious Plan B," the report said.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Baton Rouge Post 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 Baton Rouge Post.
More InformationWASHINGTON, D.C.: A federal rule designed to make it easier for Americans to cancel subscriptions has been blocked by a U.S. appeals...
BASTROP, Texas: In a surprising turn at Elon Musk's X platform, CEO Linda Yaccarino announced she is stepping down, just months after...
NEW YORK CITY, New York: Former British prime minister Rishi Sunak will return to Goldman Sachs in an advisory role, the Wall Street...
LONDON, U.K.: Physically backed gold exchange-traded funds recorded their most significant semi-annual inflow since the first half...
AMSTERDAM, Netherlands: Some 32 percent of global semiconductor production could face climate change-related copper supply disruptions...
NEW YORK, New York - U.S. stocks rebounded Tuesday with all the major indices gaining ground. Markets in the UK, Europe and Canada...
Nearly 2,000 jobs in the executive branch dealing with foreign policy are reportedly on the chopping block The US State Department...
Washington DC [US], July 11 (ANI): US President Donald Trump said on Thursday that a new agreement has been reached with NATO, under...
New Delhi [India], July 11 (ANI): The National Investigation Agency (NIA) has arrested another key conspirator wanted in the ISIS Pune...
Kuala Lumpur [Malaysia], July 11 (ANI): There is a 'high probability' that US President Donald Trump and Chinese President Xi Jinping...
Kabul [Afghanistan], July 11 (ANI): Japan has provided USD 5 million through UNICEF to bolster polio eradication efforts and strengthen...
Brussels [Belgium], July 11 (ANI/WAM): EU Ministers of Foreign Affairs will hold a meeting next Monday in Brussels, to be chaired by...