European Commission President Ursula von der Leyen will meet US President Joe Biden this week during tensions between Brussels and Washington over subsidies to US companies hurting European companies.
On Monday, the executive’s community leader begins a trip to North America, starting first in Canada, where she will meet with Canadian Prime Minister Justin Trudeau, and then on Wednesday in the United States for what will be his second meeting with Joe Biden at the White House. Friday since the Democrat replaced Donald Trump in 2021.
On the table, in addition to cooperation on cleantech, energy and diversification of energy supplies to Europe, support for Ukraine and relations with China, the recent U.S. anti-inflation law, which provides direct support to U.S. companies for sustainable investment, which puts European companies at a disadvantage.
In recent months, the transatlantic relationship has been marked by European dissatisfaction with the US plan to subsidize local production of clean technologies by 370 billion dollars (about 350 billion euros), which is considered discriminatory, contrary to the rules of the World Trade Organization and which, together with rising energy prices, threatens to force European companies out of the continent. .
Since then, Brussels has begun talks with Washington to secure favorable treatment for European companies, in line with what Mexican and Canadian companies will receive, but no agreement has yet been reached, despite both sides acknowledging progress in recent days.
Due to a lack of guarantees from the United States, the EU is working on its own plan to boost European cleantech, a proposal that the European Commission plans to finalize in the middle of this month that should contain rules to improve the supply of critical raw materials and increase production of greentech in the European Union. land, as well as reforming the electricity market, which is seen as the key to cheaper electricity.
The North American Inflation Reduction Act, which went into effect last August, aims to cut costs for North Americans, including, for example, investments in the energy sector and subsidies for electric vehicles, batteries and renewable energy projects.
However, many of these subsidies only apply to goods made in the United States.
Last December, in a letter to EU leaders, Ursula von der Leyen proposed changes to state aid rules by 2023 to counter the “double challenge” of US inflation and energy crisis rules.
At the same time, the President of the European Commission said in an official letter that she wants “European public investment to accelerate the energy transition.”
While acknowledging that “not all Member States have the budgetary capacity for public assistance,” the official said a “structural solution must be found for the development of the cleantech industry in Europe,” which would involve the creation of a new sovereign fund to be proposed next summer. .
Author: Portuguese
Source: CM Jornal
I’m Tifany Hawkins, a professional journalist with years of experience in news reporting. I currently work for a prominent news website and write articles for 24NewsReporters as an author. My primary focus is on economy-related stories, though I am also experienced in several other areas of journalism.