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EU plans incentives for EV.

 

EU plans incentives for EV.

Ursula von der Leyen, president of the European Commission, told the World Economic Forum in Davos yesterday that Brussels would temporarily water down state aid regulations and pump cash into strategic climate-friendly businesses, as it sought to counter Biden’s $369bn subsidy package. «To keep European industry attractive, there is a need to be competitive with offers and incentives currently available outside the European Union,» von der Leyen said. BlackRock’s Larry Fink described the act as a «transformational bill» enabling «additional factories» powered by green energy on US soil. Biden’s new legislation offers tax breaks to US-based green technology groups. It has sparked concerns in the EU that it will lure European companies across the Atlantic, compounding fears over the impact of higher energy prices on Europe’s competitiveness.

Von der Leyen played down the rivalry with the US, stressing that the two blocs were investing almost €1tn in clean energy. However, Ulf Kristersson, Swedish prime minister, said in Strasbourg that low productivity, insufficient spending in research and high energy prices «pose greater risks to European competitiveness than a lack of subsidies to production».

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  1. Larry18 January 2023 at 13:10

    Insufficient spending in research is a big problem for all EU. They should and must give more funds to research and development - this is how the companies discover improvements and this is how we better our lives as a whole.

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    Replies
    1. Adam18 January 2023 at 15:06

      Yes, many countries don't give this area its due importance and that is a mistake. We need to constantly invest in innovation.

      Delete
  2. Chris18 January 2023 at 16:16

    I agree that high energy prices can lead to some companies leaving for the US. This is a real danger and all EU countries must address it right away.

    ReplyDelete
    Replies
    1. Frank18 January 2023 at 18:40

      Yes, the EU and every government should work to reduce energy prices and increase productivity so the US subsidy package isn't as appealing anymore.

      Delete

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