Talks Opened On Inflation Reduction Act

EU Commissioner for the Internal Market Thierry Breton has told reporters that the European Commission has opened talks with the United States to discuss electric vehicle subsidies.

• According to Reuters, Breton said the Commission will also discuss other aspects of the recently approved US Inflation Reduction Act.
• European officials continue to seek reassurance from the US that subsidies within the IRA won't lead to an asymmetrical market balance for European manufacturers.
• The European Commission issued a statement on Dec 29 after the Biden administration partially acquiesced to European concerns: "New guidance issued today by the US reaffirms that EU companies can benefit from the Commercial Clean Vehicle Credit scheme under the US Inflation Reduction Act. The EU welcomes this guidance... [but] Further work is ongoing [...] to find solutions to European concerns, for example by treating the EU the same way as all US FTA partners.."
• Bloomberg reported last week that, French Finance Minister Bruno Le Maire "will present a “green industry” bill soon as Europe seeks to stop businesses being lured across the Atlantic by billions of dollars of subsidies under the US’s climate law."