Skip to main content

EU drawn up plans to hit US inflation reduction act.

 Brus­sels has drawn up plans to hit back at the $369bn US Infla­tion Reduc­tion Act by unwind­ing state aid curbs to allow tax cred­its for green invest­ment.

EU

The EU is plan­ning to hit back at the US’s $369bn Infla­tion Reduc­tion Act by unwind­ing state aid restric­tions to allow a wave of tax cred­its for green invest­ment.
Under a draft plan seen by the Fin­an­cial Times, the European Com­mis­sion will fur­ther relax rules to sup­port state sup­port of new pro­duc­tion facil­it­ies in green sec­tors, includ­ing via the cre­ation of tax bene­fits. But the move strays into con­tro­ver­sial ter­rit­ory within the EU, as it will be far easier for deep-pock­eted coun­tries such as Ger­many to dole out fiscal incent­ives than their fisc­ally stretched coun­ter­parts in the south.
«What we are say­ing here is that if you want to give invest­ment aid, you can give that in the form of a tax credit if that is more accom­mod­at­ing for the busi­ness,» Mar­grethe Vestager, com­mis­sion vice-pres­id­ent, told the FT.
«State aid must become more agile, we have to make decisions more quickly. But we do not need any excess­ive exten­sion of sub­sidies in the EU».
A tem­por­ary frame­work would allow greater aid for mature tech­no­lo­gies and renew­able ener­gies, going bey­ond those already defined by the EU’s renew­able energy laws to include green hydro­gen and bio­fuels, the draft pro­posal said.
Labels:

Comments

  1. Grace31 January 2023 at 12:51

    "State aid must become more agile, we have to make decisions more quickly" - just do this and every economy in the EU will flourish within 2 years. The faster the state responds to this, the better.

    ReplyDelete
    Replies
    1. Allan31 January 2023 at 14:12

      But the EU also needs to allocate resources for the right projects and not just hand out money around to anyone. This money needs to be used for the right purposes not to be spent foolishly.

      Delete

Post a Comment

Cloud Bookkeeping

Google has launched its Bard chat­bot.

  Google has launched its Bard chat­bot in a move to rival OpenAI’s pop­u­lar Chat­GPT, as it seeks to make up lost ground in the race to com­mer­cial­ise gen­er­at­ive arti­fi­cial intel­li­gence tech­no­logy. Google said that Bard, which provides answers to text­based ques­tions, will be run sep­ar­ately from its Google Search engine. In recent weeks, gen­er­at­ive AI has also been integ­rated into widely used pro­ductiv­ity applic­a­tions, such as Google’s Work­space includ­ing Google Docs and Gmail, and Microsoft’s Office 365 soft­ware, as well as into pop­u­lar apps such as Duolingo, allow­ing mil­lions of people to start inter­act­ing with the tech­no­logy. «We want to get feed­back and gradu­ally phase up the num­ber of people who have access to Bard, and the reason for that is we want to be able to test and learn from that before we roll it out very widely,» said Zoubin Ghahramani, vice-pres­id­ent of Google Research. Bard is built on top of Google’s AI tech­no­logy known a...
3 comments
Read more

Inflation fell in Germany and Spain.

 Infla­tion fell rap­idly in two of Europe’s largest eco­nom­ies in March after a sharp drop in energy costs des­pite rises in the price of other goods and ser­vices. Ger­man con­sumer prices rose 7.8 per cent year-on-year on a har­mon­ised basis, down from the pre­vi­ous month’s rate of 9.3 per cent but higher than the 7.5 per cent fore­cast by eco­nom­ists polled by Reu­ters. The fig­ures came hours after Spain’s annual infla­tion rate almost halved to 3.1 per cent for March, from 6 per cent the pre­vi­ous month. Euro area gov­ern­ment bonds sold off after the coun­try’s infla­tion fig­ures were pub­lished. Yields on Ger­man two-year debt rose 0.13 per­cent­age points to 2.8 per cent as investors bet that bor­row­ing costs in the euro­zone would rise fur­ther. The ECB has raised interest rates swiftly in response to a surge in infla­tion over the past year, rais­ing its bench­mark deposit rate from minus 0.5 per cent the last sum­mer to 3 per cent. However, some mem­bers of the g...
Post a Comment
Read more

US producer price index.

 The pro­du­cer price index, which is often regarded as a lead­ing indic­ator of where con­sumer infla­tion is headed in sev­eral months, rose 0.7 per cent last month from Decem­ber, the US Bur­eau of Labor Stat­ist­ics said yes­ter­day, that sur­passed eco­nom­ists’ expect­a­tions for a 0.4 per cent increase. On an annual basis, the PPI, which tracks prices paid to US pro­du­cers for goods and ser­vices, was up 6 per cent from a year ago. That marked a mod­er­a­tion from 6.5 per cent in Decem­ber but came in well above mar­ket fore­casts for 5.4 per cent. Last month, a block­buster non-farm payrolls report showed the US eco­nomy added more than half a mil­lion jobs in Janu­ary, and the job­less rate fell to a 53year-low of 3.4 per cent. Fed chair Jay Pow­ell then warned rates might rise more than investors expect as the firm labour mar­ket could mean it takes longer for the Fed to hit its 2 per cent tar­get. The S&P 500 was down 0.6 per cent in morn­ing trad­ing, hav­ing man­a...
2 comments
Read more