Free Trial

Ger Fin Min: Expansion Of EU Subsidies Not Right Response To IRA


Reuters reporting that German Finance Minister Christian Lindner, speaking on EU finances in Helsinki, has said that the European Union must not respond to the US Inflation Reduction Act with excessive subsidies.

  • Lindner: "At a fundamental level, I think that the Inflation Reduction Act sends the right signal to industry that the future is climate neutral but an excessive expansion of European Union subsidies is not the right response. Instead we need to make state aid law more agile."
  • Lindner told CNBC yesterday that the focus for the EU should be on “the supply side of our economies, modernizing our labor markets for example. We need a better quality of public sector investments, not more quantity of public sector investments."
  • A special meeting of the European Council last week agreed to allow “for targeted, temporary and proportionate support to be deployed speedily, including via tax credits, in those sectors that are strategic for the green transition and are adversely impacted by foreign subsidies or high energy prices.”
  • In his speech, Lindner also warned against a decoupling from China, arguing that an EU withdrawal would "leave the Chinese market to others."

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.