EU must act over distortions from US climate plan - von der Leyen

The EU indispensable code "distortions" created by a $430bn (£349bn) US program to incentivise climate-friendly technologies, the bloc's main says.

Some EU members person criticised the US Inflation Reduction Act (IRA), raising fears of a commercialized war.

There are concerns that taxation breaks whitethorn lure distant EU businesses and disadvantage European companies.

European Commission President Ursula von der Leyen said the EU should "adjust our ain rules".

"Competition is bully ... but this contention indispensable respect a level playing field," she said during a code successful Belgium.

Under the IRA, American consumers volition get incentives to acquisition caller and second-hand electrical cars, to lukewarm their homes with vigor pumps and adjacent to navigator their nutrient utilizing electrical induction.

US President Joe Biden has called it the astir "aggressive action" his state has taken to tackle the clime crisis.

But European allies comprehend it arsenic anti-competitive and a menace to European jobs, particularly successful the vigor and car sectors.

Ms von der Leyen said the EU had to enactment with the US "to code immoderate of the astir concerning aspects of the law".

She added that the EU indispensable besides "adjust" its ain rules connected authorities assistance to spur nationalist concern successful the biology transition.

The caller authorities was raised during French President Emmanuel Macron's travel to Washington to conscionable Mr Biden this week.

The US president said determination could beryllium "tweaks" made to marque it easier for European firms to payment from the subsidies package.

"I ne'er intended to exclude folks who were cooperating with us. That was not the intention," Mr Biden said.

"We're backmost successful business, Europe is backmost successful business. And we are going to proceed to make manufacturing jobs successful America, but not astatine the disbursal of Europe."