Home » News » The EU must “support” its industry in the face of American subsidies, says Thierry Breton

The EU must “support” its industry in the face of American subsidies, says Thierry Breton

With the air of good relations, Brussels and Washington could squabble over a history of competition. The European Union has been worried for several months about the effects of a 420 billion dollar plan by US President Joe Biden largely dedicated to the climate and adopted last summer. This plan includes, among other things, reforms in favor of companies established in the United States, particularly in the sectors of electric vehicles, batteries, tech, renewable energy and even hydrogen.

Emmanuel Macron did not hesitate to openly criticize this plan during his visit to the United States. The European Commissioner for the Internal Market, Thierry Breton, calls for the creation of a “European sovereignty fund to support industrial projects” and deals with the American Inflation Reduction Act (IRA). It “distorts competition to the detriment of European Union companies”, says Thierry Breton in an interview with the Sunday newspaper, after threatening in early November to “go before the World Trade Organisation” to enforce the his arguments. “A working group with representatives of the White House and the European Commission has already been created,” he adds.

An equivalent plan in Europe?

Emmanuel Macron said on Friday that he wanted the issue of the “exemptions” asked of European industries in the United States to be “resolved” by the first quarter of 2023 after having judged some of the American measures “super aggressive” the day before. The American president said he was ready to correct the “defects” of his law, which he however defended tooth and nail. “After the overtures obtained in Washington by President Macron, I am confident that the European Union’s efforts will bear fruit. Faster than you think, I hope. Maybe in the next few days! “, adds Thierry Breton in the JDD.

On the other hand, the Commissioner underlines the need for Europe to improve its attractiveness and competitiveness by focusing on “technological and strategic sectors for the success of its green transition”, in particular wind turbines, solar energy and electricity grids and adapting a regulatory framework “too cumbersome”. Underlining the different debt conditions according to the States, Thierry Breton finally affirms that “we should probably consider financing around 2% of the European Union’s GDP, or around 350 billion euros”.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.