January 28, 2023

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Convergence between the United States and the European Union is necessary on subsidies. The meeting between Giorgetti and Bale

The economy secretary met with Biden’s deputy national security adviser. Face to face “strengthen the friendship between the two.” Rome is seeking to work with Washington to preserve transatlantic relations in light of the inflationary law

Giancarlo GiorgettiToday met the Minister of Economy and Finance Mike PyleDeputy US National Security Adviser and G7/G20 Sherpa to the President Joe Biden, participated in a European tour that has already touched Paris and Berlin. The ministry announced that the talks focused on the economic consequences of the war in Ukraine, the impact of the law on reducing inflation on European industry, and the priorities of Japan’s presidency of the Group of Seven. Face to face “strengthen the friendship between the two,” we read. Also in this aspect, Rome is trying to work with Washington to maintain transatlantic relations.

Inflation Reduction Act

With experience in the Obama administration, past Chief Strategy Officer at BlackRock (the world’s first investment firm) and former economic advisor to the Vice President Kamala HarrisPyle arrived at the White House before the G-7 Summit in late June to take over his duties Dalip SinghTo the private sector and economic files. Among them is the law to reduce inflation.

European concerns

The Biden administration’s European economic concerns are well known, which foresees $369 billion in subsidies for national production in strategic energy sectors and allocates aggressive tax credits for the purchase of electric vehicles tied to intermediate components of domestic origin. Countries like France and Germany are determined to ask the United States to consider exceptions for European companies, and he’s banking on the words of President Biden who said in December he saw room for changes in the law that “make it easier for European countries to participate.” Others are ready to propose the so-called European purchase law to support national companies. And there are those who vigorously attack Washington, such as the Belgian Prime Minister Alexander Decro Who yesterday accused the United States of waging an “aggressive” campaign to lure European companies to the other side of the Atlantic: “The United States, our partner, is calling our industry. And they say: Why invest in Europe? You should come to the United States.” He said at a seminar of his political group Renew They strongly relate to German and Belgian companies: do not invest in Europe, we have something better.

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necessary coordination

The European Union and the United States launched a joint task force Agree on the “importance of close coordination in support of sustainable and resilient supply chains across the Atlantic.” Advertisement made only by Bale with Bjorn SiebertHead of the Office of the President of the European Commission Ursula von der Leyenat the end of a meeting in Berlin on October 25.

Giorgetti’s words in December

On the sidelines of the Eurogroup meeting at the beginning of December, Minister Giorgetti spoke about the package of US subsidies provided for in the law to reduce inflation, and declared that he supported such a European plan aimed at reducing inflation: “We see positively the measures that favor competitiveness and protect strategic production but in At the same time, we believe that any intervention should be carried out at the European level while preserving the integrity of the single market in a spirit of sincere cooperation.“We must ensure equal competitive opportunities for our companies with regard to the American market and the internal European market.”A few days later, as a guest at the 10th anniversary ceremony According to Fratelli d’Italia, he spoke of the risk of companies fleeing to the United States, a “disaster”.

The Franco-German Axis in Washington

In situations similar to Giorgetti’s, too Bruno Le MaireThe French Finance Minister, who recently announced a trip to Washington with his German counterpart Robert Habeckat a demonstration I found my intention between Paris and Berlin, to demand that the Biden administration “give more consideration to European interests” in implementing the law. in the past hours Hildegard MuellerThe head of the German Federation of the Automotive Industry on Wednesday called on Brussels and Berlin to ensure that policies aimed at protecting the environment also protect the competitiveness of European industry. He declared that “the United States has recognized what they must do for their country, and Germany and Europe must do the same,” defining the inflation-lowering law as a “wake-up call” for the European authorities. He said it was a “protective and discriminatory regulatory approach that runs counter to the free market”.

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Towards the European Council in February

yesterday Thierry Breton, the European Commissioner for Industry who launched the Clean Tech Europe initiative at the end of November and which some defined as a European response to the US and China, suggested that in order to counteract the impact of US measures to support the national industry, in light of the upcoming European Council on February 9 and 10, work is underway to define The European response is to promote “clean” technologies, adapt rules on state aid to companies, promote joint ventures of European interest, and integrate the next generation of EU. with financial solutions. Also yesterday, in an interview with The sun is 24 hoursAnd Paul Gentiloni, Commissioner for Economic Affairs, defined transatlantic relations as “very good, certainly better than in the past. However,” the knot created by the Statute of Inflation remains. It is an exacerbating factor in an already unequal situation in which Europe suffers more than America from the energy crisis and other repercussions of the war in Ukraine.” He said the EU should “prevent our response” to the US package from “creating new rifts” among the 27 member states. “It is necessary to combine new procedures at the national level with new joint instruments based on co-financing,” he added.