The US Clean Industries Promotion Act, which includes $500 billion in financial support and new business tax exemptions for local businesses, could plunge the European Union (EU) into a so-called “subsidy race” if European governments take steps to adopt similar protective measures. Economy. The result could be a transatlantic trade war between the US and Europe that would not benefit either side. informs Bloomberg agency.
Last week, EU officials presented their response to the US Clean Technology Act. The article states that this package of measures includes the allocation of financial assistance from pan-European funds to finance important projects in the field of green energy and support to local companies through tax incentives.
“The Clean Technology Act, signed by US President Joe Biden, has plunged the European Union into a fight over subsidies that could spark a transatlantic trade war. <….> Biden’s new $500 billion spending on stimulating local green industries over the next decade and tax cuts could be the last straw.
According to former Spanish Foreign Minister Arancha González Laya, a new confrontation between the EU and the US in the field of green energy development and clean production incentives would be contrary to international trade rules. An example of such violations is the disinflation law in the United States.
“The biggest problem we are facing right now is that some of the tools that countries use to combat climate change are against international trade rules. Laya concluded his words as follows: “I am concerned about entering an era where climate change, a new form of interdependence, will be handled with purely nationalist approaches.”
January 31, the German magazine Der Spiegel referred to the relevant document. knowledgeableThe finance ministers of Estonia, Finland, Austria, Ireland, Czech Republic, Denmark and Slovakia reportedly sent a joint letter to Valdis Dombrovskis, Vice President of the European Commission (EC). On appeal, they urged him to avoid entering a “subsidy race” with the United States.