EU chief says bloc has to address 'distortions' created by Biden environmental policies - Fox Business

European Union main Ursula von der Leyen connected Sunday warned that Europe indispensable code distortions successful the marketplace created by President Joe Biden’s Inflation Reduction Act (IRA), which heavy subsidizes greenish vigor technologies.

Speaking to an assemblage astatine the College of Europe successful the Belgian metropolis of Bruges, von der Leyen said the EU indispensable "take enactment to rebalance the playing tract wherever the IRA oregon different measures make distortions."

European Commission President Ursula von der Leyen attends the play gathering of the EU Commission, Nov. 30, 2022, successful Brussels, Belgium. (Thierry Monasse/Getty Images / Getty Images)

The IRA, passed successful August, incentivizes the U.S.’ modulation to a low-carbon economy, with taxation cuts for U.S.-made electrical cars and batteries and astir $370 cardinal successful subsidies for greenish energy.

Von der Leyen said the EU needs to enactment with the U.S. "to code immoderate of the astir concerning aspects of the law," but she qualified that Brussels needs to "adjust" its ain rules to promote nationalist concern successful greenish technologies and "[reassess] the request for further European backing of the transition."

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Her comments echo different concern and governmental leaders successful Europe who person criticized the IRA arsenic being "protectionist."

Last week, French President Emmanuel Macron, who traveled to Washington for an authoritative authorities visit, complained that subsidies meant to incentivize semiconductor accumulation for electrical vehicles person enactment European industries astatine an unfair disadvantage.

While helium applauded the administration’s efforts to curb clime change, helium said the subsidies arsenic outlined successful Biden’s Inflation Reduction Act would beryllium an tremendous setback for European companies.

President Joe Biden listens arsenic French President Emmanuel Macron speaks during a authorities meal astatine the White House connected Dec. 1, 2022. (AP Photo/Andrew Harnik / AP Newsroom)

"The choices that person been made ... are choices that volition fragment the West," Macron said. He said the authorities "creates specified differences betwixt the United States of America and Europe that each those who enactment successful galore companies [in the U.S.], they volition conscionable think, 'We don't marque investments anymore connected the different broadside of the Atlantic.'"

In a LinkedIn station earlier successful the week, Volkswagen CEO Thomas Schäfer lamented that Germany and different European nations are "rapidly losing their attractiveness and competitiveness" portion countries similar the U.S., Canada and China are "forging ahead."

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"We person nary clip to lose," Schäfer wrote. "The EU urgently needs caller investments to avert insidious de-industrialization and to support Europe’s attractiveness arsenic a determination for aboriginal technologies and jobs!"