BERLIN Reuters - The European Union does not want to wage a war against the United States over its Inflation Reduction Act, EU Commissioner Paolo Gentiloni said on Tuesday.
The EU CommissionEU Commission plans to present a package that promotes European industry on Wednesday in response to the U.S. government's 370 billion-dollar subsidy package to promote climate-friendly technologies.
In December, the EU said it would adapt its state aid rules to prevent an exodus of investment triggered by the Inflation Reduction Act, fearing it might lure away EU businesses and disadvantage European companies.
It is a challenge for our competitiveness on top of existing challenges, according to Gentiloni.
A draft of the Commission's plan to support industries facing U.S. and Chinese competition said it would produce a simpler regulatory framework for manufacturers of technologies that are deemed key to meeting the EU's climate change goals, including faster permitting procedures.
The funding will not be started until the end of the discussion, according to Gentiloni.
A draft of its Green Deal Industrial Plan shows on Monday that the European Commission won't propose any new joint EU borrowing.