The IRA package offers tax breaks, for example, to US green energy operators operating in their home country. It is feared that it will weaken the position of European green energy in relation to the United States.
of the EU should agree on a unified line to improve competitiveness and protect strategic manufacturing in return for the US Inflation Reduction Act (IRA) aid package, said Italy’s finance minister Giancarlo Giorgietti on Monday at the meeting of the finance ministers of the euro area. This is reported by the news agency Reuters.
“We support the European IRA program, which aims to reduce inflation,” said Giorgietti.
The IRA of hundreds of billions of dollars aims, as its name suggests, to combat inflation, but it is also a climate package that supports green energy. It provides tax breaks for energy sector products produced in the United States. The package offers tax incentives for, among other things, the purchase of an electric car, but only if the vehicle in question is made in the United States.
It has raised concerns in Europe that tax breaks are luring European companies across the Atlantic. It is feared that it will especially weaken the position of European green energy in relation to the United States.
According to Giorgietti, the EU should act in a unified manner, and not based on the different approaches of the member states, in order to preserve the integrity of the internal market.
European chairman of the commission Ursula von der Leyen said on Sundaythat the Union should modify state aid systems to allow governments to help industry combat the negative effects of the IRA.
“We try carefully to avoid distortions in the EU’s internal market. It is very important. But we also need to be able to respond to the growing global competition in clean technologies,” von der Leyen said of the Financial Times by.
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