MEP Vasile Blaga (PNL, EPP) welcomed on Tuesday the European Commission’s plan to counter US anti-inflation policies, stressing that a trade war between the EU and the US would come at the worst possible time.
”It is probably hard enough for the European Union to give up strict single market policies, but the new economic logic into which Russia’s attack on Ukraine has thrown us all requires radical measures. And it is good that, albeit belatedly, the European Union is considering measures to keep innovation and production of renewable energy products in Europe. The Inflation Reduction Act (IRA) passed in the US last year, with a $367 billion package of subsidies to boost manufacturing in the US, risks relocating much of the EU’s production or new investment in green energy. A trade war between the US and the EU would come at the worst possible time, given Russia’s aggression against Ukraine which should unite us all”, said Vasile Blaga.
The European Union is preparing a plan to relax state aid to support investment in green sectors. The aid also includes making it easier for companies to access tax credits.
The draft also includes an extension of the ”exemption” scheme, which allows differentiated state aid to certain sectors without prior approval from the Commission, making it easier for Member States to subsidise green hydrogen or biofuel production capacity.
“Everything is still in a planning stage, things are still under discussion. The European Union must also come up with a solution to prevent possible imbalances in the single market caused by the different financial possibilities of member states. The EU must also consider a financing component in the new plan”, said Vasile Blaga.
