The finance ministers of Estonia, Finland, Austria, Ireland, the Czech Republic, Denmark and Slovakia sent a joint letter to European Commission (EC) Vice-President Valdis Dombrovskis, warning him against a subsidy race with the United States. About informs The German journal Der Spiegel, which refers to the relevant document.
In August 2022, US President Joe Biden signed a law that would allocate $370 billion for the development of renewable energy and $64 billion for the reduction of pharmaceutical costs, as well as tax subsidies for the purchase of products manufactured in North America. The ministers of the above EU countries warned Dombrovskis not to follow this strategy in the EU.
“The EU’s competitiveness is based on a strong adaptive economy and solid public finances that encourage private investment and innovation. Financial support to companies that are not justified by open market failures can lead to a dangerous subsidy race (with the USA – socialbites.ca) that some EU member states cannot withstand and can be detrimental to the EU as a whole. ‘ says the letter.
January 24 Financial Times reportedthat economic officials from several US states have begun to actively poach European clean energy enterprises. These are companies focused on environmentally friendly energy generation technologies.
Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.