PHOTO Ursula von der Leyen © ANSA/EPA
“Today, the production and processing of some of the critical raw materials for the green revolution are controlled by a single country, China. Europe and the United States can build an alternative to this monopoly by creating a Critical Raw Materials Club. The idea behind it is simple: Cooperation with partners and allies for procurement, production and processing gives us the opportunity to overcome the monopoly.” Ursula von der Leyen said it in Bruges.
There is a risk, Ursula von der Leyen said, that the US Inflation Reduction Act (IRA) “could lead to unfair competition, close markets and fragment the same critical value chains that have already been tested by Covid. We need to look closely at these issues while learning what we can do better. In doing so, we need to consider three particularly challenging aspects: first, the “Buy American” rationale that underlies part of the IRA, and second, the taxes that drive it could discrimination; and third, production subsidies that could lead to a “subsidy race”.
“The US Inflation Reduction Act (IRA) should get us thinking about how we can improve our state aid framework and adapt it to a new global environment,” said European Commission President Ursula von der Leyen.
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Last updated: 04 December 2022 15:13