Loading ...Europe is bracing for a confrontation with Washington over a new law that encourages businesses to invest more in the U.S., an initiative European officials say threatens the region’s economy as it teeters on the verge of a recession.
At issue is the Inflation Reduction Act, which offers subsidies to U.S. and international companies that invest in the U.S. in certain sectors, including clean energy. The Europeans argue that the act is a beggar-thy-neighbor scheme designed to lure investors away from Europe.
It also comes at a vulnerable time for the EU, which is facing high inflation, uncertainties about its energy supplies. Complicating the trans-Atlantic dialogue is the fact that the EU is preparing protectionist measures of its own, including a border tax on carbon emissions,
U.S. and Europe Gird for Trade Spat Over Washington’s Push for Domestic Investment (msn.com)