Belgian Prime Minister Alexander De Croo called for an EU response to high energy prices and the US Inflation Reduction Act on his arrival at the EU summit in Brussels on Thursday.
As European industry is trying to cope with record-high energy bills, the US government’s $400 (€376) billion Inflation Reduction Act (IRA) will provide tax relief to US companies and help them switch to green energy from January 2023.
In the EU, this announcement led to serious concerns as the IRA could disadvantage EU companies, which in turn can increase the risk of relocation.
Belgian Prime minister went further, saying that “Europe is at risk of being deindustrialised, the impact of which could be significant for [Belgium] as well.”
He deplored that EU member states are trying to steer their national industries on their own. “It looks a bit like a game of the deepest pockets […] but in a few months when we’ll all come at the end of what we can do.”
De Croo advocated for an EU response. “During the COVID period, we understood that we were stronger together, as 27, and it is high time to do the same with energy, by intervening in the gas market as well. Energy ministers have already done quite a good work, but we must give them a final push to come to a conclusion,” he said.
“Europe must pursue an ambitious industrial policy to support our companies at a time of great change,” he also said in a tweet.
In response to the IRA, European Commission President Ursula von der Leyen recently proposed temporarily relaxing state aid rules. Belgium, along with other states, has called for an increase in aid to the EU industry as well as a more flexible application of state aid rules.
However, some other countries, such as Germany, believe that the situation needs to be further considered and are rather calling for continued dialogue with Washington.
Von der Leyen also proposed to create a new sovereignty fund for the green transition, a proposal that is also considered by Belgium. “Common funds can be very effective. Today, EU countries steal each other’s cherries, while the United States takes everything behind our backs,” the Belgian prime minister argued.
Other EU leaders also echoed De Croo’s view, with French President Emmanuel Macron and EU Council President Charles Michel calling for a rapid EU response to the US plan and warning against the possible “fragmentation of the single market” it could cause.
For De Croo, the answer to the IRA needs to “respect the single market,” which is “the biggest asset we have and that needs to be preserved.”
He added that hopes “the Council will soon give the Commission a mandate to come up with a package to help the European industry to be competitive.”
(Anne-Sophie Gayet & Arthur Riffaud | EURACTIV.com)
Source: euractiv.com
