Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
The Popular Resistance Committees: We call on all international institutions to take urgent action and uphold their responsibilities by restoring and immediately enforcing effective mechanisms for the distribution of humanitarian aid.
The Popular Resistance Committees: The latest Zio-American crime against Gaza’s starving civilians constitutes a war crime, for which the US administration bears full and direct responsibility.
Gaza Media Office: Bloody spectacle shows that these zones have become collective death traps rather than aid distribution zones.
Gaza Media Office: Dozens of citizens are still surrounded under constant fire in the vicinity of the "aid station."
Gaza Media Office: As soon as citizens arrived, occupation and Americans opened direct fire on them.
Gaza Media Office: Occupation, in complicity with the US company, called on citizens to move toward Wadi Gaza Bridge, claiming that aid would be distributed.
Gaza Government Media Office: Occupation set a bloody trap at bridge of Wadi Gaza, luring thousands of starved civilians, and opened fire on them.
Al Mayadeen's correspondent in South Lebanon: Israeli drone drops sonic grenade in town of Ramiyah.
Al Mayadeen's correspondent in South Lebanon: Israeli drone strike targets vehicle in town of Beit Lif.
The Government Media Office in Gaza: The occupation’s latest crime is further evidence of its ongoing implementation of genocide through starvation.

EU plans subsidy war fund for industry amid ‘existential’ US threat

  • By Al Mayadeen English
  • Source: POLITICO
  • 23 Nov 2022 12:47
  • 1 Shares
4 Min Read

High gas prices and new lavish subsidies for American competitors have put Europe in a state of emergency.

  • x
  • EU plans subsidy war chest as industry faces ‘existential’ US threat. Source:EU
    EU is in a state of emergency. 

Two senior EU officials told POLITICO that the EU is in emergency mode and preparing a significant subsidy push to protect European industry from being wiped out by US rivals.

Europe is facing a double hammer blow from the US. If it weren't enough that the war in Ukraine could keep energy prices permanently far higher than those in the US, President Joe Biden is also currently rolling out a $369 billion industrial subsidy scheme to support green industries under the Inflation Reduction Act.

EU officials are concerned that businesses will face almost irresistible pressure to relocate new investments to the United States rather than Europe. Thierry Breton, EU Industry Commissioner, has warned that Biden's new subsidy package poses an "existential challenge" to Europe's economy.

The European Commission and countries such as France and Germany have realized that they must act quickly to prevent the continent from becoming an industrial wasteland. According to the two senior officials, the EU is currently developing an emergency plan to channel funds into key high-tech industries.

Read next: EU to backtrack to de-industrialization due to energy crisis

According to the two senior officials, the tentative solution now being considered in Brussels is to counter US subsidies with an EU fund of its own. This would be a "European Sovereignty Fund," as mentioned in Commission President Ursula von der Leyen's State of the Union address in September, to assist businesses in investing in Europe while meeting ambitious green standards.

Senior officials stated that the EU needed to act quickly because companies are already deciding where to build future factories for everything from batteries and electric cars to wind turbines and microchips.

Another reason for Brussels to act quickly is to avoid individual EU countries spending emergency funds on their own, officials warned. The chaotic response to the gas price crisis, in which EU countries responded with a slew of national support measures that threatened to undermine the single market, remains a sore point in Brussels.

Related News

Challenges undermine Gulf States’ ambitions in AI development: FT

US expands federal contract cuts to target tech vendors: WSJ

EU Commissioner Breton, in particular, has led the charge in sounding the alarm. According to those present, Breton issued his warning about the Inflation Reduction Act's "existential challenge" to Europe during a meeting with EU industry leaders on Monday.

Read next: EU inflation hits new record high, economic growth falls back

Breton said it was now a matter of utmost urgency to "revert the deindustrialization process taking place." It was echoing warnings from business leaders across Europe that a perfect storm was brewing for manufacturers. "It's a bit like drowning. It's happening quietly,” BusinessEurope President Fredrik Persson said.

The Inflation Reduction Act is especially vexing for EU carmakers like France and Germany because it encourages consumers to "Buy American" when it comes to electric vehicles. Brussels and other EU capitals see this as undermining global free trade, and Brussels wants to strike a deal in which its companies can benefit from the same American advantages.

With a diplomatic solution appearing unlikely and Brussels wishing to avoid a full-fledged trade war, a subsidy race appears to be a contentious Plan B. To do so, Germany and the more economically liberal commissioners, such as trade chief Valdis Dombrovskis and competition chief Margrethe Vestager, will be critical.

Brussels hopes to get more clarity from Berlin on whether they are willing to break their subsidy taboo at a meeting of EU trade ministers on Friday.

Read next: WSJ: Future EU winters could face energy crisis despite 95% storage

Yesterday, the United States and its Group of Seven allies were set to agree to cap the price of Russian oil at $60-70 per barrel today, The Wall Street Journal reported yesterday, citing sources familiar with the matter. It is worth noting that the price of a barrel of Brent Crude was $89.43 at the time of writing.

Later on in the day, the ambassadors of the 27 European Union member states met to try and reach a decision regarding the issue at hand, noting that the decision can only be taken if the EU unanimously votes in favor, and the G7 will be voting in parallel to the 27-nation bloc.

The price cap will be implemented on December 5 if the countries agree on its terms.

  • United States
  • Europe
  • Gas prices
  • European Union

Most Read

President Donald Trump and Israeli Prime Minister Benjamin Netanyahu arrive to a news conference in the East Room of the White House, Tuesday, Feb. 4, 2025, in Washington (AP)

Rift widens: Trump, Netanyahu clash in heated phone call over Iran

  • Politics
  • 26 May 2025
US judges quietly consider private security amid Trump tensions

US judges quietly consider private security amid Trump pressures

  • US & Canada
  • 25 May 2025
An Israeli army vehicle moves in the Gaza Strip as seen from southern occupied Palestine, Thursday, May 29, 2025 (AP)

Hamas rejects Witkoff ceasefire plan, says alters terms

  • Politics
  • 29 May 2025
Spokesperson for the Yemeni Armed Forces, Brigadier General Yahya Saree, announces a new operation against Ben Gurion Airport on May 29, 2025 (Yemeni Military Media)

Yemen announces successful hypersonic missile strike on Ben Gurion

  • Politics
  • 30 May 2025

Coverage

All
War on Gaza

Read Next

All
MIT bans class president who gave pro-Palestine speech
US & Canada

MIT bans class president over pro-Palestine speech

Arab ministers condemn Israel 'ban' on planned West Bank visit
Politics

Arab ministers condemn Israeli ban on planned West Bank visit

Major General Hu Gangfeng, Vice President, National Defense University, People's Liberation Army, China, leaves after a panel discussion during the 22nd Shangri-La Dialogue summit in Singapore, Saturday, May 31, 2025. (AP Photo/Anupam Nath)
Politics

China blasts Hegseth, calls US top 'troublemaker' in Asia-Pacific

US activists demand shutdown of Musk's 'dirty' supercomputer: Reports
Technology

US activists demand shutdown of Musk's 'dirty' supercomputer: NBC News

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS