EU regulators want evidence companies are relocating due to US subsidy law

BRUSSELS — The U.S. inflation cuts bill will keep businesses out of business as EU competition regulators consider easing state aid rules to address the impact, according to a European Commission document seen by Reuters. are seeking evidence that they are shifting investments away from the block.

Earlier this week, EU officials solicited feedback from member states amid concerns over the dollar430 A law that gives tax credits to consumers who purchase goods made in the United States. Electric car (EV) and other green products.

Germany, France and several other countries have suggested that US law could put European Union companies at a disadvantage and entice them to move to the US.

“Are there examples where the availability of public support in third country jurisdictions has or will result in the transfer of investment to strategic sectors for the EU’s green transition?”27 EU accession Documents sent to the country asked.

The questionnaire is also important to the bloc’s green goals and to enable more support for greenfield investments in sectors where public support in third country jurisdictions has or will result in the relocation of firms. , asked if state aid rules should be relaxed.

The Netherlands and others, like some within the Commission, are open to the idea of ​​pouring billions of euros into European companies, adding to the already large sums of money, to offset the effects of the pandemic and the war in Ukraine. I disagree.

“In your view, would it be appropriate and/or useful to increase aid to companies operating in sectors deemed to be at real risk of migration or carbon leakage?”

In the questionnaire, wind, solar, heat pump, clean hydrogen,Electric car, battery and critical raw materials are deemed strategic to the block’s green goals and whether state aid rules are appropriate to encourage investment in these areas.

The deadline for responses is December 20th.

“Before taking steps to mitigate these problems, we should first examine how big the problems are,” said a senior EU diplomat.

“For example, I feel it is very important to understand the decisions that CEOs make regarding large investments, because it is not just about money,” said the diplomat, noting that the EU budget still has enough money. to support investments in digital and green transformation.

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https://www.autoblog.com/2022/12/15/eu-businesses-relocating-us-subsidies-tax-credits/ EU regulators want evidence companies are relocating due to US subsidy law

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