European Commission President Ursula van der Leyen also has problems with America’s economic plans. He says US President Joe Biden’s legislation releasing hundreds of billions of dollars to switch to environmentally friendly technologies creates “disruptions” that the EU must face. Other European leaders have previously criticized the measures.

Americans’ Inflationary Reduction Act (IRA) is the crux of the crime. In addition to billions in green energy subsidies, it also includes tax credits for buying American-made electric cars and batteries. European countries fear that these measures will leave their industries behind.

Donald Trump

According to van der Leyen, the EU “must take steps to level the playing field if the IRA and other measures cause disruption,” he said in a speech in Bruges. The EU should therefore sit down with the US to “discuss certain aspects of the legislation”. Brussels should work to make it easier to release public money for the energy transition, van der Leyen said.

During a state visit to the US, French President Emmanuel Macron has already spoken of the Americans’ “too aggressive” approach to European institutions. Biden later announced deals with the French to better coordinate their climate and energy policies.

Under Biden’s predecessor, Donald Trump, trade relations between the EU and the US weakened. He introduced tariffs on steel and aluminum from European countries, to which Brussels retaliated with import duties on many American products. Also, there has been a long-running debate over state aid by the US and EU respectively to aircraft manufacturers Boeing and Airbus.

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By: Wessel Wierda