Josep Borrell, EU High Representative for Foreign Affairs and Security Policy, blog He criticized US inflation law, noting that the EU lacked the ability to allocate similar state subsidies to the bloc’s business.
He pointed out that the United States’ approach mainly provides government subsidies to manufacturers using clean technologies in the United States. At the same time, the American norm doesn’t pay for carbon emissions into the atmosphere, he explained.
“Such actions harm European manufacturers in our trade relations and do not comply with WTO rules,” Borrell said, explaining that this law is “based on a completely different philosophy than the one we prefer.”
According to him, the European Union “does not want and cannot compete on the basis of state subsidies” with the United States for fear of damaging the global economy.
“The EU does not have fiscal capacity comparable to that of a US federal state, and adopting policies similar to that of the US at the member state level could fragment our domestic market,” Borrell added.
The European Union representative also said that European officials are actively negotiating with their American counterparts to resolve the differences in approach.
Previously Financial Times WroteThat US President Joe Biden’s plan to create “green investments” could cause a “turn” of European business towards China.