Print Magazine
Brussels Morning Newspaper
Friday, March 31, 2023
No Result
View All Result
  • Home
    • About Us
  • EU institutions
    • Commission
    • Parliament
    • Council
  • Europe
  • World
  • Economy
  • Culture and Society
  • In Depth
    • Ambassador’s Corner
    • The American Angle
    • Sustainable Perspective
    • Europe With Transparency
    • Place de la Bourse
    • The Macro-Economist
    • Southeast Europe
Brussels Morning Newspaper
  • Home
    • About Us
  • EU institutions
    • Commission
    • Parliament
    • Council
  • Europe
  • World
  • Economy
  • Culture and Society
  • In Depth
    • Ambassador’s Corner
    • The American Angle
    • Sustainable Perspective
    • Europe With Transparency
    • Place de la Bourse
    • The Macro-Economist
    • Southeast Europe
Brussels Morning Newspaper
No Result
View All Result
Home EU Institutions

EU split on response to US Inflation Reduction Act

Nikola Kiš by Nikola Kiš
18 January 2023
in EU Institutions
Concept,Of,Inflation,"eating",Pension,Savings.

Concept of inflation "eating" pension savings.

Share on FacebookShare on Twitter

Belgium, (Brussels Morning Newspaper) EU member states do not agree on how the bloc should respond to the US Inflation Reduction Act (IRA) adopted last year.

The European Commission has expressed concerns that IRA would put pressure on manufacturing and development of green technologies in the bloc, according to The Guardian reporting on Wednesday.

The IRA includes a subsidy package worth USD 370 billion for the green sector, with analysts pointing out that it will put additional pressure on EU industry already weakened by soaring energy prices and China’s aggressive economic policies.

EC President Ursula von der Leyen announced plans to temporarily relax the bloc’s state subsidy rules to protect EU’s green tech industry and set up a sovereignty fund to provide “fast and targeted support.”

Thierry Breton, European Commissioner for Internal Market, has proposed an EU clean tech act to channel more money to the green sector, stressing the importance of “fast, coordinated action” in response to the IRA.

Margrethe Vestager, European Commissioner for Competition, announced plans last week to review EU’s state aid rules, pointing out that the IRA could “lure some… EU businesses into moving investments to the US.”

EU split

However, there is little agreement among EU member states, with France and Germany as the largest economies calling for a relaxation of rules, while the remainder of the bloc is more skeptical.

Their skepticism is not unfounded as data shows that French and German companies accounted for approximately 77% of all state aid received in 2022, of which 53% went to German companies and 24% to their French counterparts even though the rest of the bloc generates more than 50% of EU’s GDP.

Critics of the EC’s proposed move warn that allowing large economies to provide more state aid to their companies would fatally distort the EU market.

Vestager acknowledged that relaxation of rules could have severe consequences for competition in the single market and observed that the diversity of capacities for providing state subsidies presents “a risk for the integrity” of the EU.

She proposed to accompany the relaxation of rules with the founding of a new EU fund, likely to be financed through joint borrowing, to compensate EU member states with lower capacity to subsidize their companies.

Christian Lindner, German Minister of Finance, warned that “a sovereignty fund must not be a new attempt at joint European borrowing… we see no reason for additional European debt.”

Tags: Brussels LatestinflationMain-Slider
Facebook Twitter Youtube LinkedIn

About Us

Brussels Morning is a daily online newspaper based in Belgium. BM publishes unique and independent coverage on international and European affairs. With a Europe-wide perspective, BM covers policies and politics of the EU, significant Member State developments, and looks at the international agenda with a European perspective.

Category

  • Ambassador’s Corner
  • Belgium News
  • Brussels
  • Commission
  • Council
  • Culture and Society
  • Diplomacy
  • Economy
  • EU Institutions
  • Europe
  • Europe With Transparency
  • Features
  • Health & Fitness
  • In Depth
  • Member States
  • Middle East Eye
  • Opinion
  • Our pick
  • Parliament
  • Place de la Bourse
  • Southeast Europe
  • Sustainable Perspective
  • The American Angle
  • The Macro-Economist
  • Uncategorised
  • US Elections
  • World

More info

  • About Us
  • Advertising
  • Cookies Policy
  • Contact Us
  • FAQ
  • Jobs

Brussels Morning Newspaper - All Rights Reserved © 2020

No Result
View All Result
  • Home
  • About Us
  • Brussels Bubble
    • Parliament
    • Commission
    • Council
  • Wider Europe
    • Member States
  • World
  • Business & Society
  • Europe With Transparency
  • Culture & Society
  • Policy Talks
    • Place de la Bourse
    • The Macro-Economist
    • Sustainable Perspective
    • Ambassador’s Corner
    • The American Angle
    • Southeast Europe
  • Print Magazine

Brussels Morning Newspaper - All Rights Reserved © 2020

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT