Von der Leyen plans further consultations with the United States to resolve “the most problematic aspects of her investment plan.” But in addition, Brussels must “adapt its own rules to facilitate public investment in the (climate) transition and we must reassess the need for European financing.”
She also pointed out the importance of working together to face the climate challenge. The United States and the European Union have an enormous common interest in maintaining our industrial leadership.
With the American Inflation Reduction Act comes an investment plan worth hundreds of billions of dollars. This huge investment should help build a new industrial ecosystem in strategic sectors for more environmentally friendly energy.
The plan includes subsidies and tax breaks so that American companies use or produce American products in the United States. John in the cap can benefit, too: They can charge you up to $7,500 in tax credits when you buy an electric car, provided the vehicle comes out of a North American factory and is equipped with a domestically made battery.
At the beginning of November, European finance ministers have already expressed concern about US plans. It was said that this could cause huge damage to European companies at a time when they are already struggling with high energy prices.
