European Council President Charles Michel outlined that EU leaders at the summit endorsed a set of urgent steps aimed at preserving the competitive edge of European businesses in light of the United States Inflation Reduction Act (IRA). He described the decision during a post-summit press briefing, emphasizing that the bloc would act swiftly to shield European industry from potential adverse effects while keeping channels open for dialogue with Washington. The plan is to deploy targeted measures that bolster innovation, resilience, and market access for European companies across key sectors, ensuring that European supply chains remain robust in a changing global trade landscape. This approach reflects a careful balance between defending European interests and maintaining a constructive, cooperative relationship with the United States, at a moment when economic policy movements on both sides of the Atlantic intersect and influence competitive dynamics.
Michel underscored the EU’s long-standing friendship with the United States, noting that the partnership remains a cornerstone of transatlantic cooperation. He asserted that, although the IRA presents concerns, the EU intends to engage in proactive negotiation with American counterparts to find workable paths forward that protect mutual interests and shared goals in innovation, climate action, and global competitiveness.
The European Council President also indicated that the summit granted the European Commission a mandate to implement urgent measures in early 2023 designed to safeguard the competitiveness of European enterprises. He explained that these measures would be crafted to respond swiftly to regulatory and fiscal developments, support strategic sectors, and maintain a level competitive playing field for European producers in global markets, while aligning with EU rules and standards.
French President Emmanuel Macron commented on the United States’ approach to the IRA and signaled that Europe should be prepared with its own policy response. Macron suggested that the European Union should consider adopting an equivalent framework to address competitive imbalances, while maintaining compliance with World Trade Organization norms and European governance principles. He stressed that the response should be ready before the end of the first quarter of 2023, ensuring that Europe can respond decisively and cohesively to shifting incentives and demand in the global economy.
Source: EU Council press conference. The overarching theme of the discussions centered on safeguarding Europe’s industrial base, encouraging strategic investments, and coordinating a unified stance with international partners. Leaders reiterated the importance of protecting high-value manufacturing, critical technologies, and sustainable energy sectors that underpin Europe’s economic stability and future growth. The dialogue also focused on preserving a predictable business environment, reducing regulatory fragmentation, and promoting fair competition within a framework of shared rules and mutual respect for economic sovereignty. In this context, the EU emphasized the value of continued collaboration with the United States while pursuing its own robust policy toolkit to strengthen resilience, foster innovation, and maintain global competitiveness in an era of dynamic geopolitical and economic shifts.