EU says US Inflation Reduction Act could harm European industry, and

Brussels/Paris/Washington: The Inflation Reduction Act introduced by US President Joe Biden is dangerous for European industries. The European Union (EU) has warned of appealing against it to the World Trade Organization. The finance ministers of Europe discussed this issue and decided to oppose it unitedly in a meeting held on Tuesday. Emmanuel Macron, the president of the EU’s leading country France, has also criticized the US law and said that it is not in the interest of Europe.

The Biden administration approved the Inflation Reduction Act in August and allocated $369 billion for energy and the environment. The Inflation Reduction Act provides huge subsidies to companies in specific sectors, such as electric vehicles in the US. Europe is claiming that this is against international trade regulations and inappropriately supporting the green economy of the US. Last month, French President Macron reprimanded the US over the same issue.

‘The Biden administration is providing almost 80 per cent subsidies to some companies and industries in the US, while the European countries are prevented from taking such decisions which reflects the hypocrisy of the US, President Macron warned. Macron further said that such decisions affect the credibility of US-Europe trade. It was evident from Tuesday’s meeting that most of the member states of the European Union support Macron’s position.

At the meeting held on Tuesday, the EU articulated nine points, objecting to the US law. The EU expects the US to address these issues, or else it has warned of filing a petition at the World Trade Organization. At the same time, the senior officials of the EU have informed that the European countries have agreed that the US law is dangerous for European industry and economy.