The EU must take "rebalancing" measures to smooth out the "distortions" of competition caused by the massive American subsidies of Joe Biden's Inflation Reduction Act (IRA), European Commission President Ursula von der Leyen said on Sunday.
Speaking at the College of Europe in Bruges in Belgium von der Leyen said that the bloc "must take action to rebalance the playing field where the IRA (Inflation Reduction Act) and other measures create distortions. In other words: we need to do our homework here in Europe and at the same time, we have to work with the United States to mitigate competitive disadvantages."
The US programme Inflation Reduction Act is a roughly €350 billion investment plan to build a new green economy, particularly in clean energy production. Subsidies and tax credits are linked to companies using US products or producing in the US.
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