February 1, 2023

SHSU Houstonian Online

Read all latest news headlines from USA, UK and around the world, get today's breaking news and live updates on politics, elections, business, sports, economy,​ …

Brussels is mulling a new subsidy to compete with the US

Brussels is mulling a new subsidy to compete with the US

The European Union is considering billions in aid to companies competing with the US. reports that The Financial Times. Meanwhile, the Dutch business community continues to be concerned about the business environment within its own national borders.

The European Union has been trying for months to do something about the US government’s so-called deflationary act. For example, it subsidizes Americans to buy an electric car with an American-made battery to boost their own economy. President Joe Biden’s administration has allocated billions for this.

The IRA went into effect this month and, according to the European Union, gives US industry a competitive advantage. The EU is concerned that companies will move their operations to countries outside the EU, including the US, because of the more favorable investment climate.

It is feared that this will harm the European industry. European Commissioner Paolo Gentiloni wants a new subsidy bloc in Europe so that member states can continue to compete with the US.

Review

During the EU summit in December, EU leaders asked the European Commission to come up with concrete plans this month to facilitate and accelerate the investments needed for the green transition. With the costs of the war in Ukraine, steep energy prices and high inflation, EU leaders want to pull out all the stops to keep the European economy and intended climate policy running smoothly.

Not all member states and European commissioners are happy with the idea of ​​a new subsidy scheme. They fear a trade war with the US and point to a lot of money being poured into corona support packages in recent years, FD writes.

See also  US inflation is at its highest level since 1982

Business environment

Meanwhile, according to the business community, the business environment in the Netherlands is under pressure. After Shell, Unilever and KLM, the Dutch Boskalis are now threatening to leave our country. Top man Pieter Berdowski laments the government’s policy in recent years, which has resulted in “a greater chance of Boskalis leaving the Netherlands”. He recently said on the WNL radio show Sven on 1.

President of VNO-NCW Ingrid Thijssen is concerned. He is talking to several companies that are considering leaving the Netherlands, he said on Op1 on Monday evening. “The feeling is really different.” The capstone of the crime appears to be a new initiative on corporate social responsibility, which will be debated in the House of Representatives next week.

As a result, companies can often be held responsible for human rights violations or CO2 emissions. “There are huge risks in the current legislation,” warns the employers’ front.

Read more: Is our Dutch business climate still entrepreneurial-friendly? ‘Concrete Rot’

By: Peter Visser