# U.S., EU to address Inflation Reduction Act fears constructively -draft
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-12-02
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: EU and US to Address Concerns on US Green Energy Subsidy Package
Meta Description: Learn how the US and EU plan to tackle issues surrounding the new US green energy subsidy package, aimed at avoiding a subsidy race and addressing concerns
URL: https://financedigest.com/u-s-eu-to-address-inflation-reduction-act-fears-constructively-drafthtml

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By Foo Yun Chee

BRUSSELS (Reuters) – The United States and the European Union will seek to tackle EU concerns about a new U.S. green energy subsidy package in a [constructive way](https://www.financedigest.com/3-ways-to-safeguard-and-include-women-in-construction.html "3 ways to safeguard and include women in construction"), officials from both sides are due to say at a meeting next week, a draft joint statement shows.

The 27-country bloc fears that the U.S. $430 billion Inflation Reduction Act with its generous tax breaks may lure away EU businesses and disadvantage European companies from car [manufacturers to makers of green](https://www.financedigest.com/why-manufacturers-mustnt-lose-their-green-focus-in-troubled-times.html "WHY MANUFACTURERS MUSTN’T LOSE THEIR GREEN FOCUS IN TROUBLED TIMES") technology.

The topic is one of several on the agenda of the EU-U.S. Trade and [Technology Council meeting](https://www.financedigest.com/choosing-the-correct-technology-for-your-meeting-room.html "Choosing the correct technology for your meeting room") on Dec. 5.

Participants include U.S. Secretary of State Antony Blinken, Commerce Secretary Gina Raimondo, U.S. [Trade Representative Katherine Tai and European](https://www.financedigest.com/over-80-of-businesses-forsee-difficulties-in-european-trading-when-the-uk-leaves-the-eu.html "Over 80% Of Businesses Forsee Difficulties In European Trading When The UK Leaves The EU") Commission Executive Vice Presidents Valdis Dombrovskis and Margrethe Vestager.

We acknowledge the EU’s [concerns and underline our commitment to address](https://www.financedigest.com/connectivity-concerns-must-be-addressed-to-unlock-iots-potential-for-energy-sector.html "Connectivity concerns must be addressed to unlock IoT’s potential for energy sector") them constructively,” a Dec. 1 draft joint [statement intended to be issued after the meeting](https://www.financedigest.com/statement-by-imf-first-deputy-managing-director-david-lipton-on-meeting-with-egypts-president.html "Statement by IMF First Deputy Managing Director David Lipton on Meeting with Egypt’s President") said.

The draft document, which was seen by Reuters and could still be revised, did not set out any specific measures.

With the United States and the EU both set to give huge state funding to chipmakers, the two will agree to set up a common tool for sharing information about public support, a move aimed at [avoiding a subsidy race](https://www.financedigest.com/the-race-to-avoid-data-dinosaur-extinction.html "THE RACE TO AVOID DATA DINOSAUR EXTINCTION"), the document said.

Both sides will exchange information and best [practice on investment](https://www.financedigest.com/should-you-invest-in-nfts-or-their-future-practical-uses-in-tech.html "Should You Invest in NFTs, or Their Future Practical Uses in Tech?") approaches and terms and conditions for public support.

The document pointed to the threat from non-market economic policies and practices, in particular those affecting medical devices companies, [saying both sides would look into appropriate policy tools and coordinate action to diversify supply](https://www.financedigest.com/ceraweek-europe-gas-supplies-to-stay-tight-2-more-winters-equinor-ceo-says.html "CERAWEEK-Europe gas supplies to stay tight 2 more winters, Equinor CEO says") chains.

To that end, we will continue building a shared understanding of [China’s economic and industrial directives and other non-market policies](https://www.financedigest.com/dutch-responds-to-us-china-policy-with-a-plan-to-curb-semiconductor-tech-exports.html "Dutch responds to US China policy with a plan to curb semiconductor tech exports") and practices,” it said.

A separate draft joint statement on [protecting human rights defenders online took aim](https://www.financedigest.com/eus-planned-reforms-aim-to-better-protect-power-bills-from-market-swings.html "EU’s planned reforms aim to better protect power bills from market swings") at the responsibilities of Big Tech firms such as Alphabet unit Google, Meta and Twitter.

We urge companies to prevent the misuse of their products and platforms, conduct due diligence, take effective action to [address all forms of online violence and unlawful or arbitrary surveillance against human](https://www.financedigest.com/addressing-the-human-aspects-of-business-transformation.html "Addressing the human aspects of business transformation") rights defenders…,” it said.

We also support stronger accountability for technology platforms and recognize the role of government to enhance online safety, [security and privacy.”](https://www.financedigest.com/privacy-vs-security-is-the-cybersecurity-information-sharing-act-beneficial.html "PRIVACY VS SECURITY: IS THE CYBERSECURITY INFORMATION SHARING ACT BENEFICIAL?")

In an unexpected move, EU [industry chief Thierry Breton will skip the meeting as the agenda allocated only two hours of ministerial meetings on issues](https://www.financedigest.com/how-the-financial-services-industry-can-solve-the-issue-of-vulnerable-code.html "How the financial services industry can solve the issue of vulnerable code") concerning European businesses, his aide said. Breton will instead travel to the United [States for bilateral visits](https://www.financedigest.com/king-charles-hosts-first-state-visit-for-s-africas-ramaphosa.html "King Charles hosts first state visit for S.Africa’s Ramaphosa") in early 2023.

(Reporting by Foo Yun Chee; Editing by Alexander Smith)


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