EU countries do not want to enter subsidy race after U. S.
2023.01.31 09:09
EU countries do not want to enter subsidy race after U. S.
By Kristina Sobol
Budrigannews.com – According to a statement released on Tuesday by the Czech Finance Ministry, seven nations that are members of the European Union and are located in the north and east of the bloc have sent a letter to Valdis Dombrovskis, vice president of the European Commission, warning him against engaging in a subsidy competition with the United States.
According to a previous report in Der Spiegel, the finance ministers of Estonia, Finland, Austria, Ireland, the Czech Republic, Denmark, and Slovakia had written to Dombrovskis to warn against a risky “subsidy race” if they gave too much money to businesses “not justified by clear market failures.”
Additionally, Czech Finance Minister Zbynek Stanjura stated that “escalating a trade war with the United States” would be incorrect.
Stanjura made the following statement via Twitter: “Introducing retaliatory protectionist measures will threaten the fiscal stability of EU countries and will lead to disruption of the internal market.”
“We have to find a compromise solution with the U.S. side that will keep a fair competitive environment.”
In December, the EU stated that it would modify its regulations regarding state aid in order to avert an exodus of investment triggered by the U.S. Inflation Reduction Act. The EU feared that this would draw businesses from the EU and disadvantage European businesses.
