Germany urges EU to unite against US inflation law
2022.12.09 11:27
Germany urges EU to unite against US inflation law
Budrigannews.com – According to a document from the German economy ministry that was seen by Reuters on Friday, Germany wants a joint response from Europe to the U.S. Inflation Reduction Act that would involve simplifying rules on state support and expanding funding opportunities.
To circumvent financial constraints, the European Union could establish a program to promote green technology by combining various funding sources: It stated that either the European Investment Bank (EIB) or the Innovation Fund could increase support for large-scale clean technology projects or take on more risk through guarantees.
The ministry document also suggests that member states could extend or increase traditional subsidy programs and include sustainability criteria in public tenders at the national level. However, it warns against local content requirements that favor domestic industry.
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According to the document, these would not only likely go against the law of the World Trade Organization (WTO), but they would also contribute to “a further erosion of the world trade order.”
While countries in the European Union applaud Washington’s push to invest in green technology, they argue that 207 billion euros worth of U.S. subsidies tied to locally produced content could violate WTO rules and disadvantage their businesses.
In the hope of resolving the disagreement over the $430 billion act, Washington and the European Union have established a joint task force.
