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Von der Leyen also assured that the EU will continue to work with the US to resolve competition differences.
The European Union (EU) must take measures to balance global competition after the approval of the US Inflation Reduction Act, declared the President of the European Commission, Ursula von der Leyen.
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"We must adjust our rules to facilitate public investment in environmental transformation, and pan-European funding must also be re-evaluated," Von der Leyen declared while speaking at the College of Europe in the Belgian city of Bruges.
At the same time he assured that the EU will continue to work with the US to resolve differences in competition, as well as to ensure a level playing field for companies that have emerged since the passage of the new law.
With the #EUGreenDeal and the #InflationReductionAct, the EU and the US are modernising their economies and addressing climate change, the biggest challenge of our time.
— Ursula von der Leyen (@vonderleyen) December 4, 2022
Yet the IRA is also raising concerns in Europe ↓ https://t.co/lTAJjfV8u9
The Inflation Reduction Act, signed in August by US President Joe Biden, provides some $369 billion in funding for US green technology and energy security.
In addition, the US directs $80 billion for tax enforcement from the Internal Revenue Service.
The EU has branded this step as discriminatory towards similar production imported from other countries, fearing that US subsidies will withdraw potential investment from the European continent.
In this context, the European Commissioner for the Internal Market, Thierry Breton, stated on November 7 that countermeasures were not ruled out if the US did not review its business support measures as stipulated in the Inflation Reduction Act.
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