The head of the European Parliament's trade committee said on Sunday that the EU should file a complaint with the World Trade Organization WTO in the next few months about the United States' green energy subsidy package.
The US and the EU have tried to be conciliatory about the bill, but they said last week they would try to address the bloc's concerns about the package, known as the US Inflation Reduction Act.
The $430 billion bill, with generous tax breaks for US companies, may disadvantage European companies from car manufacturers to makers of green technology, according to EU members.
At a meeting next week, officials from both sides will be talking about the issue, but Bernd Lange, 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.
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I don't think that much will change in substance because the law has already been passed, according to the Funke media group, who said complaining to the WTO would send a message that the bill would be incompatible with the organization's rules.