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
Araghchi to Grossi: These parties will bear responsibility for the consequences of their actions
Araghchi to Grossi: Iran will respond to any unlawful action by European countries or parties attempting to turn the Agency into a tool for achieving their objectives
Araghchi to Grossi: We urge the Agency to warn against the consequences of any political move against Iran
Araghchi to Grossi: We call on the Agency to highlight Iran’s full cooperation during the upcoming Board of Governors meeting next week
Araghchi to Grossi: We demand that the Agency reflect the facts in a manner that prevents certain parties from exploiting it to advance their political agendas
Iranian Foreign Minister Abbas Araghchi holds a phone call with IAEA Director General Rafael Grossi
Trump envoy Witkoff has sent 'detailed and acceptable proposal' to Iran for nuclear deal; it's in their best interest to accept it: White House Press Secretary Leavitt
Hamas official says Witkoff's position toward group was 'unfair' and shows 'complete bias' to 'Israel'
Hamas official says it has considered Witkoff's proposal acceptable for negotiations, says 'Israel's' response was incompatible with what the group agreed on
Hamas official says group has not rejected Wikoff's proposal for Gaza ceasefire

EU prepares subsidy program to shield vital industries from US' IRA

  • By Al Mayadeen English
  • Source: Agencies
  • 23 Nov 2022 18:21
4 Min Read

Serious concerns have been raised since Washington adopted the Inflation Reduction Act (IRA), which many officials believe will entice crucial enterprises to invest in the US rather than the EU. 

  • x
  • EU Preparing Subsidy Assistance to Protect Industry From Relocation to
    EU Preparing Subsidy Assistance to Protect Industry From Relocation to

News outlet Politico reported on Wednesday that the EU is planning to launch a bloc-wide subsidy assistance program to shield its own industries from US competitors.

In light of the sweeping energy crisis throughout the EU, serious concerns have been raised since Washington adopted the Inflation Reduction Act (IRA) on August 16, 2022, which many officials believe will entice crucial enterprises to invest in the US rather than the EU. 

Some EU officials have gone as far as criticizing the bill for breaching international trade rules.

The EU has „serious concerns“ about the US Inflation Reduction Act, accusing the US of breaching international trade rules

=> In a nutshell the US 🇺🇸 is further pushing the deindustrialization of the EU. Now the EU warns of a trade war 🇪🇺🏚️

Ze German Finance Minister Lindner 🇩🇪 https://t.co/sC0g75K4Wg pic.twitter.com/oZeIZaeuYd

— Yoda Research (@YodaResearch) November 7, 2022

The IRA specifically covers a wide range of areas, including energy-related legislation.

It increased the Investment Tax Credit for renewable energy projects from 26% to 30% and extended it to all storage projects.

It also includes tax credits to manufacture solar panels, inverters, and racking components.

In addition, there are more tax credits for electric vehicles, electrical panels, heat pumps, and many other products directly related to the renewables industry.

According to sources quoted by Politico, the EU has been working on launching an emergency package to direct money to its vital industries.

The sources said it is crucial that the bloc acts fast because companies are now making the decisive choice to know whether they will relocate to the US or remain in the US.

On November 18, a co-leader of Germany's ruling Social Democratic Party (SPD), Lars Klingbeil, said Germany is currently facing the risk of undergoing a process of de-industrialization due to partial disruptions in supply chains, staff shortages, and soaring energy prices.

Related News

How the US lost its place as the world’s manufacturing powerhouse: WSJ

IRS sounds alarm after DOGE seeks access to sensitive taxpayer data

Some argue that Germany may be forced to go back to the firewood era, as its gas stockpiles won't be enough to fight off the upcoming cold in Europe.

The bill promises to put the difference of about $300 billion toward deficit reduction. It will also provide $369 billion in funds for energy security and climate change. $64 billion will be allocated to the Affordable Care Act over the next ten years.

Moreover, it will raise $739 billion in revenue by imposing a 15% corporate minimum tax. Printing that much more money to solve inflation does not seem to be a valid approach. But because the US dollar is the global reserve currency, there is no real trouble it that. 

The bill will also aim to reform prescription drug pricing policies, boosting Internal Revenue Service tax enforcement and addressing the carried interest loophole.

Read more: EU Parliament designates Russia as 'state sponsor of terrorism'

In recent months, relations between the EU and the US have not been as smooth. Last month the EU condemned the subsidies offered to American companies in President Biden’s Inflation Reduction Act, giving them unfair leverage over their European rivals.

French President Emmanuel Macron has recently expressed that such subsidies on electric vehicles discriminate against the EU and other trade partners.

Macron also slammed the US for practicing double standards as it offers EU gas prices 3 to 4 times higher than the prices in the American domestic market.

"American gas is 3-4 times cheaper on the domestic market than the price at which they offer it to Europeans.

These are double standards," Macron stated, adding that "it concerns sincerity in transatlantic trade" and that this issue should be addressed.

Read more: Europe takes China's side in new 'Cold War': The Telegraph

  • USA
  • Inflation Reduction Act
  • 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