FX Guys

EU seeks to arrest industry decline in green transition

Europe’s industrial competitiveness in relation to the United States and China, the world’s two biggest economies, has become a major concern across the bloc 30 years after it created its borderless single market, which some say is now due for a major revamp.

Next week’s announcements include legislative proposals to facilitate domestic production of key supplies and streamline grants for green projects, and also address the divisive issue of state aid. They come before a summit of EU leaders on March 23-24 to discuss and guide the EU response.

Many in the EU are worried that U.S. President Joe Biden’s Inflation Reduction Act, which offers $369 billion of green subsidies that often only apply to products made in North America, could lure companies out of Europe, allowing the United States to grow into a clean tech giant at Europe’s expense.

EU internal markets commissioner Thierry Breton said this week it was clear that both the United States and China…
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