Europe marches against US ‘Inflation Reduction Act'

Paris: It will be ensured that the United States does not treat the European Union as inferior to its neighbours Canada and Mexico. European countries will never tolerate such behaviour. German Chancellor Olaf Scholz has indicated that European countries have taken an aggressive stance against the United States’ ‘Inflation Reduction Act’. On Sunday, France and Germany, the leading countries in Europe, held a meeting in Paris, the capital of France. During the meeting, French President Emmanuel Macron and German Chancellor Scholz signalled additional funding from Europe to respond to the US law.

In August, the Biden administration approved the ‘Inflation Reduction Act’ and allocated $369 billion for energy and the environment. Through the ‘Inflation Reduction Act’, a large amount of subsidies will be given to companies in some sectors, including electric vehicles in the United States. Europe is claiming that this matter is against international trade rules and improperly supporting the ‘green economy’ in the United States. France was the first to take an aggressive stance on this issue. In October, French President Macron reprimanded the US. Macron had openly raised this issue during his visit to the United States. The Biden administration has given almost 80 per cent subsidies to some areas in the United States. At the same time, European countries have been prevented from taking such decisions. This also shows the hypocrisy of the United States. The French President warned that such decisions affect the credibility of US-Europe trade.

After the stance taken by Macron, other member countries of the federation also started to put forward a strong view in this regard. European industries and related organizations have also become aggressive over this. Germany’s leading trade union has slammed the US law as an attempt to end industry in Europe. After that, the European Union also warned to appeal to the World Trade Organization. European Parliament trade chief Bernd Lang warned that a legal battle should be launched against the US. Ursula von der Leyen, head of the confederation, called for European countries to change their rules.

The leaders of France and Germany have taken the initiative and proposed that European companies get funds from the European Union. At the same time, it is said that the member countries of the federation should be approved to invest more in companies in those countries. Sources have claimed that if both of these things are approved, European companies will get a large amount of financial support and be able to face the US competition.

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