The Strategist

EU expresses concern about U.S. inflation policy

02/17/2023 - 10:53

The European Parliament (EP) is worried about many American provisions. The European Commission should work with the authorities to achieve exemptions for European businesses from the discriminatory Inflation Reduction Act, the EP stated in a release.

MEPs express worry about measures in the U.S. Inflation Reduction Act that discriminate against EU companies and call for the European Commission to take a harder stance against unfair global competition brought on by unjustified state aid, according to the message.

The announcement stated that the deputies believe the European Commission should exert pressure on the U.S. to ensure that specific exclusions in the act apply to the EU as well and that European goods are eligible for tax cuts just like U.S. goods are.

This stance was taken by EP parliamentarians in a resolution approved during Thursday's plenary session.

The U.S. Inflation Reduction Act would, among other things, increase tax breaks for the purchase of electric vehicles that are built in North America and use batteries that are made in the country from components produced locally.