MEPs ask Commission Vice-President Vestager and Czech Minister Bek about the measures the EU could take to tackle the massive tax breaks to companies producing in the US, a scheme that puts European industry at a disadvantage. Extracts from the debate.

Strasbourg

debate

plenary session

EU - USA (T)

LANGE, Bernd (S&D, DE)

de LANGE, Esther (EPP, NL)

VESTAGER, Margrethe (CE)

YON-COURTIN, Stéphanie (Renew, FR)

BEK, Mikuláš

EU response to the US Inflation Reduction Act: extracts from the debate

Title: EU response to the US Inflation Reduction Act: extracts from the debate (I-234868)

SOUNDBITE (English), Mikuláš BEK, Czech Minister for European Affairs, There are concerns in the Council that the discriminatory elements of the IRA, which are designed to benefit US based manufacturers without guaranteeing a level playing field, may have a negative impact on European companies. The new US legislation, even if not in place yet, is already having an impact on the investment plans of our companies, and there is a clear potential for a more systemic impact on the EU industry, in particular in sectors which are of crucial importance for our green transition.

SOUNDBITE (English), Mikuláš BEK, Czech Minister for European Affairs, We will collectively need to consider the appropriate measures, for instance, regarding efficiency of state aid and industrial policy, to decisively address the distortions created by the IRA or any other future measures that put our companies and the European economy at a competitive disadvantage. The EU should be proactive and double the efforts already underway to extend trade opportunities for our companies and improve access to raw materials.

SOUNDBITE (English), Margrethe VESTAGER, Executive vicepresident of the European Commission, The Inflation Reduction Act discriminates against EU producers and exports many of the green subsidies they come with local content assembly manufacturing requirements. The effect will be felt not only by EU manufacturers of key final products to enable the green transition, but also their suppliers of upstream components within the European Union, including highly specialised, small and medium sized businesses.

SOUNDBITE (English), Margrethe VESTAGER, Executive vicepresident of the European Commission, These political commitments made by the US that they translate into concrete solutions in the implementation of the Act to limit the damage as much as possible. This is the aim of the task force which has been set up between the European Commission and the White House. It will continue working hard with the aim of seeing results by the end of this year, because that is also the timing for guidance of the US Treasury to implement the Inflation Reduction Act. Yesterday we launched a consultation of Member States in particular to seek their views on the following three issues.

SOUNDBITE (English), Margrethe VESTAGER, Executive vicepresident of the European Commission, First, how to further simplify the granting of aid for the rollout of renewable energy. Second, how to further simplify the granting of aid to decarbonise production processes of industry. And thirdly, whether it is necsary to support certain types of productive investment in strategic sectors for the green transition. If supported by the result of the consultation of Member States, targeted adaptations of our temporary framework could serve as a bridge to real European solutions in the medium term.

SOUNDBITE (English), Esther de LANGE (EPP, NL), The EPP welcomes the ideas put on the table by the Commission this morning, but we should do more. Rather than the immediate more subsidies reflex, we should first redirect money remaining in existing funds to strategic infrastructure for key sectors. And this should be done cross-border. Because let's be fair, this is what what's lacking in the current funds.

SOUNDBITE (English), Bernd LANGE (S&D, DE), The behaviour of the United States in the last two months is really a push away from a real good partnership. Might make sense to what might be the principle of some people in the United States, and this is really undermining our cooperation. Margaret mentioned the good cooperation of the TTC, but we need also to create a green transition and it should not lead to a subsidy ways. We should really stick to the international trading rules and we should defend this.

SOUNDBITE (French), Stephanie YON-COURTIN (Renew, FR), We too need to work to protect our economies, our jobs and our citizens. Rather than looking inward, we need to take our rightful place and be a global player. Almost 500 million citizens who were so resilient and battled so hard in the face of the COVID crisis and the war in Ukraine and that's what I really want for Christmas, is for us to work together to achieve this together.

SOUNDBITE (English), Ernest URTASUN (Greens/EFA, ES), We need to say as well the risks that the US measures pose for the EU in terms of competitiveness. The U.S. wants to accelerate green transition and this is most welcome. But we should also urge us to respect for economic cooperation. Unless we react, this package can make us outcompete European players in the new economy.

EU response to the US Inflation Reduction Act: extracts from the debate

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