Italian Economy Minister Giancarlo Giorgetti called for a common European Union approach to competitiveness and protect strategic production, in response to the massive subsidies in the US' Inflation Reduction Act IRA The EU fears that the $430 billion IRA scheme will attract EU businesses and disadvantage European companies, from car manufacturers to makers of green technology.
Giorgetti said in a statement issued on the sidelines of a meeting with the euro zone finance ministers that they were in favor of a European IRA plan with the aim of reducing inflation.
The EU will change its aid rules to allow governments to help their industries counter the negative impact of the IRA bill, according to President Ursula von der Leyen.
Giorgetti said the EU should act in a united fashion rather than follow a country-by-country approach.
Giorgetti said that measures that favor competitiveness and protect strategic production as positive are important but at the same time we think that any intervention must be taken at the European level to preserve the integrity of the single market.