Posted on 11/09/2022 4:20:09 AM PST by FarCenter
EU member states are standing resolutely firm against President Joe Biden’s Inflation Reduction Act amid fears it will harm their domestic companies and economies.
The sweeping U.S. legislation, which was approved by U.S. lawmakers in August and includes a record $369 billion in spending on climate and energy policies, was discussed by the 27 EU finance ministers on Tuesday. This came after the European Commission, the executive arm of the EU, said there are “serious concerns” about the design of the financial incentives in the package.
“Each minister agreed that this is a subject of concern at the European level and that we need to see what is the best response,” an EU official, who followed the ministers’ discussions but preferred to remain anonymous due to the sensitive nature of the issue, told CNBC.
The same official added that “there is a political consensus (among the 27 ministers) that this plan threatens the European industry.”
The EU has listed at least nine points in the U.S. Inflation Reduction Act that could be in breach of international trade rules. One of the biggest sticking points for the Europeans is the tax credits granted for electric cars made in North America. This could bring challenges to European carmakers that are focusing on EVs, such as Volkswagen .
“That’s what we’re eventually seeking: that the EU should be, as a close ally of the U.S., in a position which is more similar to that of Mexico and Canada,” Valdis Dombrovskis, the EU’s trade chief, said at a press conference Tuesday.
South Korean officials have also raised similar concerns to Europe, given the set of measures in the U.S. could also restrict Hyundai and others from doing business in America.
(Excerpt) Read more at cnbc.com ...
Europe has essentially de-industrialized itself.
What ‘industry’ is does have is either going insolvent or is leaving Europe.
So I beg the question, what ‘industry’ is Europe referencing here?
They are referring to European automakers who produce electric vehicles in Europe and want to sell them in the U.S.
Ah.
Aren’t they already struggling hard?
EU electrics are trivial compared to the real threat that is China.
They finally caught on...that the USA does not run the EU.
The EUnuchs are destined to become a vassal state of the USA for at least a decade.
Without RU gas, they will depend on American LNG regardless of who’s in the WH.
ping
Well, the US is not “supposed to” run the EU; however, the direction of the US has seemed to be a guiding light for the EU since it came to be...
Of course, when the US elects a brain-dead, idiotic puppet, the negative implications become extremely important to the idiotic puppets in the EU!!
Serves all of humanity right! This is the world we get when we put KNOWN IDIOTS in charge!
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