EU should file complaint against U.S. green subsidy bill

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EU should file complaint against U.S. green subsidy bill

U.S. and EU flags are displayed during the visit by Vice President Pence to the European Commission headquarters in Brussels.

The European Union should file a complaint with the World Trade Organization WTO in the next few months about the United States green energy subsidy package, the head of the European Parliament's trade committee said on Sunday.

The U.S. and the EU have tried to be conciliatory about the bill, saying last week they would try to address the bloc's concerns about the package, known as the U.S. Inflation Reduction Act.

EU members worry that the $430 billion bill, with generous tax breaks for U.S. companies, could disadvantage European companies from car manufacturers to makers of green technology.

At a meeting next week, officials from both sides will address the issue, but Bernd Lange, the chair of the EU parliament's trade committee, said he no longer expects a negotiated solution, as only small changes could still be agreed through talks.

I don't think that much will change in substance, because the law has already been passed, according to a report by Funke media group, which said complaining to the WTO would send a message that the bill would be incompatible with the organization's rules.