BRUSSELS (Reuters) – The European Union will tweak its state aid rules to prevent investment outflows triggered by a new U.S. green energy subsidy program, the European Union’s chief executive said on Sunday.
“Competition is good … but it must respect a level playing field,” European Commission President Ursula von der Leyen said in a speech in the Belgian city of Bruges .
“The (U.S.) Lower Inflation Act should make us reflect on how to improve our state aid framework and adapt it to the new global environment,” she added.
-National EU fears $1 billion inflation relief bill and its generous tax breaks could lure EU businesses and disadvantage European firms , from automakers to green technology manufacturers.
This topic is one of several items on the agenda for the 5 December EU-US trade and technology committee meeting.
Attendees included US Secretary of State Anthony Blinken Tary Gina Raimondo and US Trade Representative Katherine Tai, as well as European Commission Executive Vice Presidents Valdis Dombrovskis and Margrethe Vestager.