Major American companies are retreating from investing in Europe…for this reason

Many major companies in the United States are tending to reconsider their investments in Europe, in order to take advantage of a new American law that seems to lead to a reduction in American investments in the European continent.

The company, “Tesla”, the giant specialized in the production of electric cars, recently announced a strategic shift away from Europe, as it seeks to benefit from unprecedented subsidies in the United States, but a report published by the American network “CNBC” said that “Tesla” is not the only company. Which reviews investment decisions in Europe.

The report said that many multinational companies are reconsidering plans to employ new funds in Europe, and this comes after US President Joe Biden introduced last year the Inflation Reduction Act (IRA), which includes allocating a record amount of $ 369 billion for spending on climate and energy policies.

“European companies would rather have a share of US government support than be penalized by European authorities,” said Evangelos Mytileneos, CEO and chairman of Greek industrial conglomerate Mytileneios.

It is still too early to assess how much investment could be deflected away from Europe as a result of Biden’s policy, but the message from European companies is clear so far: They want officials in the region to do more to support them.

Last month, Tesla decided to scale back some investments in Germany and focus on the North American market instead to take advantage of the IRA. (Arabic)

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