MONITORING DESK
BRUSSELS: The European Union (EU) chief Ursula von der Leyen on Sunday said the union needs to act to address “distortions” created by Washington’s $430-billion program to support climate-friendly technologies in the United States (US).
The EU must “take action to re-adjust the playing field where the Inflation Reduction Act (IRA) or other steps create distortions,” the EU chief said in a speech delivered at the College of Europe in Burges’ city, Belgian.
Member countries of the European Union have criticized the US for its landmark IRA act, seeing it as a threat to European jobs and anti-competitive, especially in the auto and energy sectors.
US plans $370 billion subsidies for green energy amid climate change
The IRA act, designed to power the US transition to a low-carbon economy, comprises around $370 billion in subsidies for climate-related initiatives and tax cuts for batteries and electric cars made in the US.
EU chief said the union had to work with Washington “to address the most disturbing aspects of the IRA law.”
French President Emmanuel Macron found an opportunity to air deep grievances over US-EU trade on a state visit to Washington for talks with US President Joe Biden last week.
The White House views the IRA as a landmark effort to reignite US manufacturing and promote renewable technologies.
