Faced with rising alarm over a massive US package of green subsidies, Ursula von der Leyen has bowed to pressure from business and governments and said the EU would match Washington’s support and relax its rules on how much help member states can offer.
Speaking to students in Bruges earlier this month, the European Commission president said US president Joe Biden’s $369bn stab at greening the economy under the landmark Inflation Reduction Act could lead to unfair competition, closing down markets and fragmenting supply chains.
“We have all heard the stories of producers that are considering to relocate future investment from Europe to the US,” von der Leyen said, adding that the commission was ready to loosen limits on subsidies within the EU, while seeking ways of unearthing fresh common funding.
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