Saturday, January 28, 2023

European and US leaders work out technology subsidies

DAVOS, Switzerland ( Associated Press) — European leaders said they are working with the United States on issues related to subsidies for American-made green technology, but trade tensions with China are more difficult to deal with.

Dutch Prime Minister Mark Rutte told a panel session on European development at the World Economic Forum meeting in Davos, Switzerland, on Thursday that “the main problem in Europe is that we do not have a coordinated policy with China.”

He said that “It’s not that we have to choose between the United States and China. We need to do our own politics. And our own policy, first of all, should be that we should have a mindset that we want to be a player.” Yes, not a playground.

European Commission President Ursula von der Leyen unveiled a major cleantech industrial plan in Davos earlier this week that will pave the way for subsidies for green industries and bundle projects across the EU, which are promoted with significant funding .

It aims to increase pressure on the bloc of 27 countries to commit to climate neutrality by 2050 and ensure its economic survival while facing challenges from China and the United States.

The concern about the US Inflation Cut Act funding for “made in America” ​​green technology, such as electric vehicles, is that “it is done in a discriminatory way,” Valdis Dombrovskis, executive vice president of the EU Commission, said.

He said that this is not helping to build transatlantic value chains, it is actually cutting them off.

But he added that the EU-US working group has “a satisfactory solution on the green vehicle tax credit. But there are many other areas that we need to focus on.”

On China, Rutte said it offers a huge base of innovation and capability, but “at the same time, we have legitimate security concerns.” He said it was important to maintain Western gains in industries such as semiconductors, which could be used in defense systems.

Croatian Prime Minister Andrej Plenkovic said that “there is a big difference between China and Russia.” He said he does not see “a similar pattern of threats that threaten our economy, our way of life and our security” with China.

Nation World News Desk
Nation World News Desk
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