Italy urges EU to respond to US subsidies
2022.12.05 13:59
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Italy urges EU to respond to US subsidies
Budrigannews.com – In response to the massive subsidies in the United States’ Inflation Reduction Act (IRA), Italian Economy Minister Giancarlo Giorgetti on Monday called for a common strategy from the European Union to support competitiveness and safeguard strategic production.
The European Union is concerned that the $430 billion IRA scheme, which provides generous tax breaks for domestic production of energy sector components, may disadvantage European companies, including car manufacturers and green technology developers.
In a statement released on the sidelines of a Brussels meeting with other finance ministers from the euro zone, Giorgetti stated, “We are in favor of a European IRA plan with the objective of reducing inflation.”
Ursula Von Der Leyen, president of the European Commission, stated on Sunday that the EU would modify its state aid regulations to enable governments to assist their industries in mitigating the effects of the IRA bill.
Giorgetti stated that the EU should act collectively rather than country by country.
“We see measures that favor competitiveness and protect strategic production as positive, but we think any intervention must be taken at the European level to preserve the integrity of the single market,” Giorgetti added. “We see measures that favor competitiveness and protect strategic production as positive.”
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