The US and the European Union (EU) have agreed on the need to ensure “comprehensive transparency” on green subsidies.
This agreement was reached during a discussion on February 7 between German Economy Minister Robert Habeck, French Economy Minister Bruno Le Maire and US Treasury Secretary Janet Yellen and other officials in Washington.
Speaking at a joint press conference following the discussion, French Economy Minister Le Maire said the February 7 discussions were “concrete and constructive,” according to which the parties agreed on the need for comprehensive transparency regarding subsidy levels and tax credit.
Le Maire said US officials and European ministers also agreed there was a need for “regular communication at the ministerial level, especially on strategic investments.”
Meanwhile, German Economy Minister Robert Habeck stressed that it is important not to let EU-US partnership become one”subsidy race.”
Mr. Habeck said both sides will convene a technical team under the auspices of an existing special task force.
The purpose of the visit to the US by the French and German economic ministers is to discuss the impact of Inflation Reduction Act (IRA) of the United States for European Industry.
The visit follows French President Emmanuel Macron’s visit to Washington in December 2022. During talks with his French counterpart, US President Joe Biden affirmed that the IRA is absolutely not intended to disadvantage the country’s allies.
The IRA is America’s landmark spending law, but it’s causing a lot of concern for the EU.
The IRA set aside regarding $370 billion to subsidize America’s energy transition, including tax breaks on electric cars and solar cells made in the country.
Europe is concerned regarding unfair competition and collateral damage if companies move outside the EU.
The union is calling on the US to consider exemptions for European companies. So far, however, a task force set up to address its concerns has yielded little success.
Previously, in order to avoid the threat from the IRA to European industry, on February 1, the European Commission (EC) proposed to increase the levels of state subsidies for businesses. in the EU to be able to compete fairly with the US in the race to become a center for producing electric vehicles and other green products.
However, member states have yet to agree on how to approach this issue.
European leaders are expected to hold a summit to discuss how to respond to the measures proposed by the US in the IRA.
Minh Chau (VNA/Vietnam+)
