The US is launching a billion-dollar “Inflation Reduction Act”. From the EU’s point of view, this could lead to distortion of competition.
Economics Minister Robert Habeck hopes his trip to Washington will bring progress in the discussion between the EU and the USA on America’s controversial anti-inflation law.
“I’m actually quite confident that it might not be possible to find further solutions today and tomorrow, but then in the next few weeks,” said the Green politician on Monday morning before leaving for the US capital. The trip should serve to explore solutions for the problematic parts of the industrial program IRA. The talks should also deal with trade policy and the geopolitical situation.
The so-called Inflation Reduction Act (IRA) provides for billions in investments in climate protection, but ties subsidies and tax credits to companies using US products or producing them themselves in the USA – which causes concerns in Europe about competitive disadvantages. Associations warn of a trade dispute and demand better production conditions in Europe.
Habeck wants to meet German company representatives in the USA on Monday. On Tuesday, Habeck wants to meet with his French counterpart Bruno Le Maire, US Treasury Secretary Janet Yellen, US Trade Representative Katherine Tai and US Secretary of Commerce Gina Raimondo, the Federal Ministry of Economics and Technology announced.
Source: Stern
