Europeans have always bragged about “values” to justify their unconditional support for Volodymyr Zelensky’s Ukraine, and only now some are starting to recognize that their powerful interests are at stake.
The economic interests of the superpower, the main backer of the occupied country, are trying to take advantage of a crisis affecting Europe in a very specific way to gain undoubted commercial advantages. And not only with the sale of its liquefied gas, it is much more expensive than Russian gas.
The Joe Biden Government’s announcement last August of what is known as the “Inflation Reduction Act”, which, although initially aimed at China, would have a negative impact on a wounded Europe cannot be interpreted otherwise. . already because of the crisis in Ukraine.
The first to sound the alarm was Bruno Le Maire, the French Minister of Economy and Finance, who saw this law as an overt protectionist intention of the North American industry.
The stated purpose of the law is to reduce foreign dependency, for example, by providing a $7,500 subsidy for the purchase of electrically powered cars, provided they are assembled in the United States.
Batteries must also be manufactured on North American soil for companies to take advantage of these public subsidies.
According to Clemens Fuest, director of the German Institute for Economic Research (IFO), this new US law contains unacceptable “protective elements”.
For many, the title of this legislation is misleading because it is a ten-year infrastructure subsidy program aimed at creating the best framework conditions for investments in that country.
European manufacturers in the automotive industry speak of “unfair competition” and demand that electric vehicles produced on this side of the Atlantic have the same advantages as those produced in Canada or Mexico.
Some compare the current dispute to former President Donald Trump’s imposition of tariffs on European steel.
If Washington continues on the 13th, France wants the European Commission to apply the same treatment to “made in the USA” products, which would spell the outbreak of a new trade war.
Taking the dispute to the World Trade Organization in Geneva is also not excluded, but he is aware that it takes a long time to sort things out there.
It is thus remembered that the dispute between Washington and Brussels over subsidies to the airline industry on both sides of the ocean lasted for seventeen years.
It is true that European companies in the auto industry could benefit from public aid from the United States if they transferred their production there, and this could be one of Washington’s targets.
It happens that some German companies from different sectors are considering moving their production to the second country, which has been greatly affected by the interruption in the supply of Russian gas, which is much cheaper than what the US currently sells to Europe.
Some people are already talking about the fact that North Americans, fearing strong competition from European industry and, very specifically from Germany, saw the best way to break Russia’s isolation because of its illegal occupation. Ukraine And judging by what’s going on, those who think so don’t seem far off the mark.
Source: Informacion
Dolores Johnson is a voice of reason at “Social Bites”. As an opinion writer, she provides her readers with insightful commentary on the most pressing issues of the day. With her well-informed perspectives and clear writing style, Dolores helps readers navigate the complex world of news and politics, providing a balanced and thoughtful view on the most important topics of the moment.