Verbatim report of proceedings

Wednesday, 14 December 2022 - Strasbourg

4. EU response to the US Inflation Reduction Act (debate)

  Die Präsidentin. – Als nächster Punkt der Tagesordnung folgt die Aussprache über die Erklärungen des Rates und der Kommission zu der Reaktion der EU auf das amerikanische Gesetz zur Senkung der Inflation (2022/2997(RSP)).

  Mikuláš Bek, President-in-Office of the Council. – Madam President, honourable Members, Vice-President of the Commission, the topic of possible repercussions of the US Inflation Reduction Act on the EU has been high on our political agendas in recent weeks and months. There are concerns in the Council that the discriminatory elements of the Inflation Reduction Act, which are designed to benefit US-based manufacturers without guaranteeing a level playing field, may have a negative impact on European companies.

The new US legislation, even if not in place yet, is already having an impact on the investment plans of our companies, and there is a clear potential for a more systemic impact on EU industry, in particular in sectors which are of crucial importance for our green transition. We are encouraged by recent positive statements of President Biden himself and the ongoing talks with the US administration. We will support any credible solutions that emerge out of these talks. But there is not much time left before the Inflation Reduction Act enters into force.

While the cooperation with our US partners in addressing the most concerning aspects of the Inflation Reduction Act will remain important, we will also need to consider in parallel what we can do at European level to support the competitiveness and resilience of our companies, the attractiveness of the EU as an investment location and reinforce our ability to step up our green transition in this crucial moment.

We will collectively need to consider the appropriate measures. For instance, regarding efficiency of State aid and industrial policy to decisively address the distortions created by the Inflation Reduction Act or any other future measures that put our companies and the European economy at a competitive disadvantage.

The US programme comes at a moment where high energy prices are already having a considerable negative impact on our industries and our competitiveness. The EU should be proactive and double the efforts already under way to extend trade opportunities for our companies and improve access to raw materials, in particular those which are of essential importance for the green transition. Europe has been very active on this front with key agreements under way or just concluded, like the very recent modernisation of the free trade agreement with Chile, thus showing Europe’s continued engagement with partners on this positive agenda. Europe needs to act swiftly and the upcoming European Council will bring a timely opportunity to hold a dedicated debate on our transatlantic relations.

Finally, let me underline that while we are continuing engaging with the US on the Inflation Reduction Act, our strategic partnership remains stronger than ever as Russia’s ongoing war of aggression against Ukraine shows the crucial importance of the transatlantic bond for our as well as global security. Thank you very much for your attention.

  Margrethe Vestager, Executive Vice-President of the Commission. – Madam President, honourable Members, thank you for this opportunity to present the Commission’s engagement with the US on the Inflation Reduction Act. The competitiveness of European industry faces a double challenge. First, Russia’s war and the weaponisation of energy supply has led to an extraordinary increase in energy prices in Europe. As we just discussed, this is also hitting many households very hard. And also because of that the dramatic increase in the price differences between Europe and the US in particular.

Second, the US Inflation Reduction Act provides generous incentives for investing in the US, including in some ways that are discriminatory against European companies and other companies as well. The EU has encouraged the US for a very long time to increase its climate action, to do more. The Inflation Reduction Act is an important initiative to deliver on this and the Commission is fully supportive of the climate goals that the US is trying to achieve with the Inflation Reduction Act.

So far for the good news. Because the Inflation Reduction Act discriminates against EU producers and exports. Many of the green subsidies come with local content, assembly, manufacturing requirements. The effect will be felt not only by EU manufacturers of key final products to enable the green transition, but also their suppliers of upstream components within the European Union, including highly specialised small and medium-sized businesses.

The Inflation Reduction Act is therefore a very strong pull factor to move investment and jobs to the US at the cost of partners and allies like the EU. This is counterproductive in terms of climate and sustainability outcomes. It’s also a violation of international trade rules. But in a wider sense, it goes against the spirit of our transatlantic partnership. And we have made this clear with the Biden Administration.

Executive Vice-President Dombrovskis and I discussed this in clear terms during the Trenton Technology Council meeting with our counterparts, Secretary Blinken, Secretary Raimondo and Trade Representative Tai. It is fair to say that the Inflation Reduction Act was prominent in our discussions in Maryland last week. And as a result, we heard a clear statement from Secretary Blinken committing to address EU concerns, building on the comments by President Biden given a few days later.

But they also contended that any legislative changes would be difficult. So what we need to see now is that these political commitments made by the US, that they translate into concrete solutions in the implementation of the act to limit the damage as much as possible.

This is the aim of the task force which has been set up between the European Commission and the White House. It will continue working hard with the aim of seeing results by the end of this year, because that is also the timing for guidance of the US Treasury to implement the Inflation Reduction Act.

We already have war in Europe, the last thing we need is a trade war on top. Through the Trade and Technology Council, and in particular when you look at the work that we’ve been doing on semiconductors, well, we have shown that a collaborative transatlantic approach to industrial subsidies, that is possible. And this should be the guiding principles for these sectors, the green sectors, the clean—tech sectors that we are discussing as well.

While we keep working with our US partners to avoid negative consequences for Europe of the US Inflation Reduction Act, we need to continue pushing for Europe to become a decarbonised, low—energy—price continent. And for that to happen as soon as possible. The attainment of the Green Deal’s objective for Europe to become a climate—neutral continent by 2050, that should not be put at risk.

The Green Deal is the European growth strategy, and we need to accompany our industries in meeting the ambitious targets. It is therefore of fundamental importance that the European Union stays an attractive place for innovation, for investment in sectors that are strategic to the green transition. Those are not all sectors. Those are specific sectors.

To facilitate this, just to face the energy crisis, as you well know, in March this year we put in place a temporary crisis framework. This enables Member States to help businesses that face extraordinary increases in energy prices, and we have been reviewing it constantly to ensure that it remains adapted to the needs of the business community. But in the current context, in the combination of huge price differences, the effects of the Inflation Reduction Act, we need to make sure that it is even simpler, even faster, even more targeted, while not losing sight of the need to preserve a level playing field to keep the single market together. And in this context, yesterday we launched a consultation of Member States in particular to seek their views on the following three issues.

First, how to further simplify the granting of aid for the rollout of renewable energy. Second, how to further simplify the granting of aid to decarbonise production processes of industry. And thirdly, whether it is necessary to support certain types of productive investment in strategic sectors for the green transition.

If supported by the result of the consultation of Member States, targeted adaptations of our temporary framework could serve as a bridge to real European solutions in the medium term. The whole of the EU, and not only the richest regions and Member States, should be able to preserve a strong industrial base. And that is why we need a European fund to complement existing instruments and to help ensure a fair green transition in all of Europe.

Finally, public support cannot do it all. Europe urgently needs to become a decarbonised, low—energy—price continent. State aid can be a short-term solution to the current challenges, but to be competitive on the world stage, we must make further efforts to remove single market barriers – barriers that unfortunately still exist.

With the RepowerEU plan we have together given a new impetus to the rollout of renewables. But more work is ahead of us to make the decarbonisation of our energy system happen fast and to bring the benefits of a high share of renewables in the energy mix to consumers in a lasting way.

  President. – Before we come to the list of the group speakers, I just would like to ask colleagues the following: we need to be very disciplined concerning speaking time; the next point on our agenda is the Sakharov Prize ceremony and everybody should speak in this round, otherwise we have some problems with the catch-the-eye, so really stick to your speaking time, please.

  Esther de Lange, on behalf of the PPE Group. – Madam President, three years ago in this room the Green Deal was compared to putting a man on the moon. And indeed at the time we were afraid that others would wreck our launchpad through unfair competition. Now the US, with the Inflation Reduction Act, is building its own launchpad. And if we’re not careful, they’re beating us at our own game, with our approach, but better tools in their toolbox. And we shouldn’t sit here and take it just because it’s our friends, the Americans.

That’s why the EPP welcomes the ideas put on the table by the Commission this morning. But we should do more. Rather than the immediate more—subsidies reflex, we should first redirect money remaining in existing funds to strategic infrastructure for key sectors. And this should be done cross-border – because let’s be fair, this is what’s lacking in the current funds. Our State aid and competition rules, it has been said, should become more strategic and more flexible, as should the upside process. And our budget, which is set in concrete for seven years, is of course not helping – there we need change and we urgently need own resources to address these new challenges.

And finally, if the talks that are ongoing and that are good with the US do not lead to results, we should not be afraid of standing up for more ‘Made in Europe’. And on that note, Madam President, in time, I wish you all a very Merry Christmas and I am sure we will revisit this topic after the break.

  Bernd Lange, on behalf of the S&D Group. – Madam President, Madam Executive Vice—President Margrethe, I guess, there’s no doubt about it, we need a partnership with the United States in this time of trouble all round, on the green transition, on the war in Ukraine, as Margrethe said.

But, of course, partnerships need also trust. And my feeling at the moment, and I’m really sad about that, that the behaviour of the United States in the last two months is really a push away from a real good partnership.

‘Might makes it right’ might be the principle of some people in the United States, and this is really undermining our cooperation. Margrethe mentioned the very good cooperation at the TTC, but we need also good cooperation on the green transition and it should not lead to a substitute race. We should really stick to the international trading rules and we should defend this. We have a lot of tools in our toolbox to defend the rules-based trading system, and we should use them if the United States is not able to cooperate in a proper way.

  Stéphanie Yon-Courtin, au nom du groupe Renew. – Madame la Présidente, chère Vice-Présidente exécutive Vestager, chers collègues, la loi sur la réduction de l’inflation impose un constat sans appel: l’OMC est au point mort; nos partenaires commerciaux privilégient leur économie.

Nous avons besoin d’un réveil européen. Les crises successives nous ont montré notre dépendance en médicaments, en matériaux ou en gaz. Dans ce contexte, nos partenaires investissent massivement pour protéger leur économie et leurs emplois. Nous l’avons rappelé plusieurs fois au sein de cet hémicycle: il faut réindustrialiser, numériser et décarboner notre économie pour regagner notre souveraineté européenne et mettre fin à nos dépendances. Cela ne doit pas rester un vœu pieux. Nos citoyens européens et nos entreprises européennes ne valent pas moins que les autres. Avec la législation sur les marchés numériques – le DMA – et le règlement sur les subventions étrangères, nous avons posé les bases de la fin de cette Europe naïve. Il est temps de nous donner les moyens d’atteindre les objectifs que nous nous sommes démocratiquement fixés.

Chers collègues, face au contexte actuel et aux réponses apportées par certains de nos partenaires étrangers, nous devons nous aussi protéger notre économie, nos emplois et nos ménages. Loin de nous recroqueviller sur nous-mêmes, redonnons à l’Union européenne sa place sur la scène des grandes puissances! L’Europe, ce marché de 460 millions de citoyens qui a su réagir, uni et en temps voulu, à la crise de la COVID-19 et à l’invasion en Ukraine, n’est pas une variable d’ajustement.

C’est mon souhait pour Noël: agissons ensemble d’urgence. Joyeux Noël!

  Ernest Urtasun, on behalf of the Verts/ALE Group. – Madam President, the US Inflation Reduction Act has caught the EU unprepared and has also exposed the limitations of our economic policy. Times are changing and we know that the building—up of a new green and social contract will require greater involvement of public authorities in investment and market intervention. But, on the other hand, we need to size well the risks that the US measures pose for the EU in terms of competitiveness. The US wants to accelerate the Green Transition and this is most welcome, but we should also urge the US to respect fair economic cooperation. Unless we react, this package can make the US out—compete European players in the new economy.

The EU should reflect, then, firstly on how to build its own industrial push through a genuine European package. That should include, as has been mentioned this morning: a reform of state—aid rules – we are very much looking for that; the establishment of new investment instruments – and that is why we want to reiterate our call for a new EU Sovereignty Fund to accelerate the Green Transition; and also a swift adoption of the reform of our fiscal rules with a view to establishing a permanent fiscal capacity.

The EU, however, should also have the ambition of pushing this package in cooperation, not competition, with our global partners. That is why we believe that the EU should engage in the framework of the G20 in a coordinated investment push that would avoid – because this is also important – an endless round of WTO disputes.

  Gunnar Beck, on behalf of the ID Group. – Madam President, the US Inflation Reduction Act is a misnomer. The Federal Reserve is taking care of inflation and, unlike the ECB, appears to be succeeding.

The act itself is promoting new energies, including nuclear energy. But, above all, it is a protectionist measure to promote US industry and to attract foreign and especially EU investment because soaring inflation and energy costs weaken EU-based producers.

The EU’s response has been predictably weak. EU leaders are appealing to the US not to put America first, while they are putting Europe last. The EU is using COVID-19 and the Ukraine war to accelerate its own self-destructive climate change and pro-migration policies, which make us a laughing stock of the whole world. The Chinese even have a word for it, baizuo, Europe’s ‘woke’ ideology, which compulsively draws us to self-destruction in the way a moth is drawn to and consumed by the flame.

Europe has recovered from two World Wars, but we will not recover from baizuo unless we face the reality of our decline and put our economic interest and our own people first. For, as Immanuel Kant said, ‘ought implies can’ and, as Machiavelli noted before, we often have to make tragic choices between saving ourselves or others: it is called the truth.

  Geert Bourgeois, namens de ECR-Fractie. – Voorzitter, mevrouw de vicevoorzitter, ik heb aandachtig naar u geluisterd. Ik heb gisteren ook uw opinie gelezen in onder andere de Vlaamse krant De Tijd. Succes met de taskforce die opgericht is. Ik hoop dat u er werkelijk in slaagt om de discriminatie van Europese bedrijven weg te werken.

Maar we hebben inderdaad ook Europees huiswerk. Akkoord met staatssteun voor zover die is gericht op innovatie, op hernieuwbare energie, op excellentie of bij marktfalen.

Maar uw tijdelijk crisiskader schept heel grote problemen, haalt het gelijke speelveld onderuit. Lees in dezelfde krant De Tijd de noodkreet van grote Vlaamse bedrijven, zoals Unilin, zoals Kronos, Aluminium Duffel. Zij kunnen niet concurreren tegen grote bedrijven uit grote lidstaten die genieten van massale staatssteun, en zij dreigen met sluiting geconfronteerd te worden.

Het vertrouwen in de EU zakt op die manier weg. Herstel het snel.

  Helmut Scholz, im Namen der Fraktion The Left. – Frau Präsidentin, Frau Vizepräsidentin! Im Unterschied zu vielen Meinungen hier oder in der europäischen Industrie, die einen Wirtschaftskrieg heraufziehen sehen und irgendwie von der US-Regierung tief enttäuscht sind, meine ich: Wir sollten dem im September 2022 beschlossenen Gesetzespaket zur industriepolitischen Erneuerung unsere Anerkennung zollen, auch wenn ich den Grundsatz „America first!“ mehr als fraglich finde.

Worum geht es? Die Democrats haben es endlich geschafft, ein großes Investitionspaket für mehr Klimaschutz und erneuerbare Energien durch den Kongress zu bringen. Um das zu erreichen, musste die Regierung Biden/Harris die Schaffung von Arbeitsplätzen und den Klimaschutz in Einklang bringen – übrigens eine Kernforderung der Linken weltweit.

Die große US-amerikanische Verbraucherinnen- und Verbraucherschutzorganisation PublicCitizen, die Gewerkschaften und viele andere klatschen. Wer die Industriebrachen in der USA gesehen hat, der versteht, dass das ganze Land eine nachhaltige Reindustrialisierung benötigt. Die soll nun angeschoben werden, und zwar mit gewaltigen Mitteln und in genau jenen Technologiebereichen, die auch wir in Europa für die nachhaltige Transformation unserer Wirtschaft und Gesellschaft benötigen.

Wir müssen deshalb selbst in der EU Geld in die Hand nehmen und investieren, statt zu jammern und zu fordern, auch europäischen Unternehmen freien Zugang zu Subventionen aus dem Geld amerikanischer Steuerzahlerinnen und Steuerzahler zu gewähren. Im Kern geht es doch um die Neuaufstellung von Industrie- und Wirtschaftspolitik, und zwar mit Blick auf globale Notwendigkeiten. Greening economies – gute Arbeit, also just green transition.

Es ist richtig und notwendig, Klimapolitik mit Industriepolitik zu verbinden. Die 430 Milliarden scheinen gut investiert und sollen den USA eine Chance eröffnen, bei der Entwicklung entscheidender Technologien einen Spitzenrang zu erringen. China investiert in gleichem Maße. Wir sollten ihnen nacheifern und deshalb ebenfalls sofort einige 100 Milliarden Euro in die Entwicklung von Technologien und endlich auch in Europa in deren Marktreife und Produktion investieren.

  Milan Uhrík (NI). – Nikdy nezabudnem na ten smutný pohľad, keď americký prezident Biden z Bieleho domu oznamoval, že Amerika nedovolí Európe postaviť plynovod medzi Ruskom a Nemeckom, plynovod Nord Stream. Nemecký kancelár Scholz tam vedľa neho vtedy len ticho stál a šúchal nohami. Priatelia, toto bol pohľad na obraz zrazenej Európy. Američania nám povedali, aby sme prijali energetické sankcie. Európa vykonala, poslúchla a trpí. Potom Američania povedali, že nám budú predávať trojnásobne drahý LNG plyn. Európa poslúchla a platí. Teraz Američania povedali, že budú zvýhodňovať domácich výrobcov, vlastných amerických, a znevýhodňovať tým pádom európskych. A Európa sa len ticho prizerá a mlčí. Pripájam sa k výzvam kolegov, aby vedenie Európskej únie konečne rázne a rozhodne podporilo európsky priemysel. To, že mnohí v Bruseli slúžia americkým záujmom, to už všetci vieme. Ale teraz je naozaj najvyšší čas postaviť sa konečne aj za tú našu Európu, za náš európsky priemysel.

  Christophe Hansen (PPE). – Madam President, Executive Vice-President, Minister, the Inflation Reduction Act could have the unintended consequence of increasing our dependency on China as our companies might turn to less reliable alternatives if they are cut out of the American supply chains. This is a reality that President Biden and his administration also needs to acknowledge.

But we have alternatives to a subsidy race to shore up the competitiveness of our industry and ensure access to critical raw materials needed for the green transition in Europe. We need to deliver – and we need to deliver now – on free trade agreements that are ready to go, and work on strategic partnerships quicker than ever. The most efficient way to react to the Inflation Reduction Act is to conclude and to ratify, during this legislative term, the agreements with Mexico, Chile, Australia, New Zealand, and not forgetting about Mercosur.

A trade war or a harmful race to the bottom in subsidies, picking winners or losers, is a recipe that has never worked before and is not the way forward. It would weaken our alliances and make our enemies only rejoice.

  Miapetra Kumpula-Natri (S&D). – Madam President, dear Commissioner and Minister Bek, it’s overwhelmingly positive that finally the USA is also investing in climate change and engaging for these actions in the Inflation Reduction Act, just as we debated with the colleagues ten days ago in the Congress. Also we see that the third TTC Ministerial was also positive on its concrete outcomes, on digital infrastructure and charging point standardisation among others, and also the new labour dialogue.

However, the unintended consequences of this act, the Inflation Reduction Act, undermine this good work. The Inflation Reduction Act design seriously risks drawing investments away from Europe to the USA, and it violates US international trade commitments. If there is no satisfactory solution very soon, the EU response must be swift and it must at the same time respect the principles of our single market, the most powerful tool for our economy and global standing, with the right balance and targeted support for future—proof industries, we should establish retail and supply chains with like—minded allies and lay down the foundation of our own strategic autonomy, alongside – and not against – transatlantic allies.

  Dita Charanzová (Renew). – Madam President, Madam Executive Vice-President, while the US and Europe are like-minded partners, both as democracies, but also economically, the Inflation Reduction Act threatens to undermine this partnership. Even if we don’t have a trade agreement with the US, which I wish we had, we have many national and sectoral agreements. European vehicles must be seen as equivalent to American assembled vehicles. But the Inflation Reduction Act has larger consequences. It’s a protectionist step which will launch a subsidy spiral between nations.

Less than 30 years ago, we created the WTO to ensure disputes were settled by discussions instead of trade wars. Yet here we go. However frustrated we are in this moment, it should not blind us to the value that free trade brings to Europe, that free trade brings to the European citizens. Let us not join the race to the bottom without thinking first.

  Reinhard Bütikofer (Verts/ALE). – Madam President, Executive Vice-President, Minister, the protectionist way in which the United States is pushing the dearly-needed green transition of their own economy hurts our interests. Our friends and partners in the United States are deviating important investment from the European to the US markets, thus effectively promoting European deindustrialisation somewhat, even if unintended. That runs counter to our shared interest, also to their own. And it has effects beyond just the economic dimension because it contributes to a creeping crisis of trust.

Of course, I wish you well, Executive Vice-President, with the talks that you have ahead of you, but I will still reserve judgment as to what can effectively be done in the negotiations. So we have to focus on what we can do ourselves. I certainly support the reform of state aid rules. I think we should invest together, as Ernest Urtasun has emphasised, in a smart, fair and WTO-compatible way. And we should also go back to looking at the fragmentation that still exists in the single market and try to overcome that. One thing we should not do: we should not retaliate against protectionism with our own protectionism.

  Zdzisław Krasnodębski (ECR). – Pani Przewodnicząca! Ja się zgadzam, że przedsiębiorstwa amerykańskie w Europie powinny być traktowane tak jak europejskie przedsiębiorstwa w Stanach Zjednoczonych. Konkurencja powinna być fair, ale czy konkurencja fair jest także zagwarantowana w samej Unii? 370 mld pomocy państwa w USA nam przeszkadza, 200 mld w Niemczech, te „Doppelwummsˮ Olafa Scholza – już nie. Czy nie jest to naruszenie zasady równości konkurencji wewnątrz Unii?

Troska o dezindustrializację Europy jest jak najbardziej uzasadniona. Ale czy to niebezpieczeństwo jest tylko wynikiem amerykańskiego aktu zwalczania inflacji, czy też wieloletniej polityki Unii, błędnej polityki energetycznej oraz faktu, że cała gospodarka została podporządkowana zbyt wyśrubowanym celom klimatycznym?

  Jérôme Rivière (NI). – Madame la Présidente, dans cette assemblée, où le mot protectionnisme est banni au point d’être considéré comme une grossièreté, on s’étonne qu’un pays, les États-Unis en l’occurrence, puisse protéger son industrie, ses emplois et ses habitants. C’est pourtant la mission première d’un État.

Comme à chaque fois, l’Union européenne idéalise la relation transatlantique, alors que l’approche américaine est avant tout pragmatique. Le président français, Emmanuel Macron, s’est rendu aux États-Unis pour dire à Joe Biden tout le mal qu’il pensait de cette loi sur la réduction de l’inflation. Naïveté ou jeu d’acteur? Un échec, en tout cas.

Nous sommes une fois de plus traités sans considération. L’Union européenne, ayatollah isolé du libre-échange immodéré, expose ainsi nos entreprises à une concurrence déséquilibrée, fragilisant notre tissu économique, nos emplois et le niveau de vie de nos concitoyens. Le fonds de souveraineté européen que veut mettre en place Thierry Breton est un leurre qui ne protégera pas suffisamment nos économies nationales.

Il est temps d’en finir avec ce dogme du libre-échange incontrôlé. Protégeons nos économies. Retrouvons le chemin d’un protectionnisme, que nous sommes le seul espace économique à avoir abandonné sur la planète.

  Markus Ferber (PPE). – Frau Präsidentin, liebe Kolleginnen, liebe Kollegen! Die europäische Wirtschaft steht vor enormen Herausforderungen. Kurzfristig sind es natürlich die hohen Energiekosten und die unterbrochenen Lieferketten, langfristig die Transformation hin zu einem kohlenstofffreien Wirtschaftsmodell.

Wir hätten in Europa also auch ohne das US-Anti-Inflations-Gesetz bereits genug zu tun. Deswegen können wir es nicht akzeptieren, wenn durch hohe Subventionen und eine Buy-American-Klausel das Fundament unserer europäischen Wirtschaft untergraben wird. Was können wir tun? Ich denke, wir sind uns einig, dass wir einen Handelskrieg derzeit nicht gebrauchen können. Deswegen sollte eine Lösung auf dem Verhandlungsweg angestrebt werden, möglichst schnell, Frau Vizepräsidentin.

Eine WTO-Klage oder Strafzölle sollten wir aber nicht ausschließen. Alle Optionen müssen auch auf den Tisch gebracht werden. Eins ist aber klar: Die Antwort auf das US-Anti-Inflations-Gesetz kann nicht in einem neuen EU-Souveränitätsfonds bestehen. Was so unschuldig daherkommt, ist nichts anderes als ein neuer Schuldentopf, auch wenn die Kommission das vielleicht anders sieht. Durch neue Schulden werden wir nicht souveräner.

  Aurore Lalucq (S&D). – Madame la Présidente, Madame la Vice-Présidente exécutive, il aura fallu seulement trois lettes pour faire trembler l’Europe:  IRA [Inflation Reduction Act]. Trois lettres pour que notre continent perde ses repères; trois lettres pour que le continent du pacte vert pour l’Europe, dans un premier temps, condamne l’ambitieux plan de transition écologique de l’une des économies les plus polluantes du monde; trois lettres pour que l’Europe panique, s’affole et pleurniche, allant même demander aux États-Unis de modifier leur plan.

Pardon, mais respectons-nous un peu. Déjà, au lieu de pleurnicher, réjouissons-nous que les États-Unis souhaitent réduire leurs émissions de gaz à effet de serre de 50 % d’ici 2030. En fait, si nous paniquons, c’est parce que nous nous rendons compte, finalement, que l’Union européenne s’est fondée sur un logiciel pseudo-économique qui est en train de mourir de sa belle mort, et que, certes, il faut avoir une politique de défense vis-à-vis de la concurrence, mais que, pour faire de la politique industrielle et de la transition écologique, il nous faut des subventions, il nous faut de la planification, il nous faut des pouvoirs publics forts et il faut parfois protéger ces industries.

Alors, certes, l’Europe a un deuil à faire, mais qu’elle le fasse vite, car la politique industrielle et la transition écologique n’attendent pas.

  Eva Maria Poptcheva (Renew). – Madam President, Executive Vice-President Vestager, Minister Bek, the US Inflation Reduction Act is good news and bad news at the same time. It’s good news that the world’s largest economy joins the EU in investing in the green transition. It is bad news though that it does so by breaching the principles of the World Trade Organization and breaking the bonds of trust between two strong partners.

Many now propose doing the same here in the European Union, but we need to stop reacting to what the US is doing and take the lead ourselves and do it our way. We need to develop a smart strategy which avoids fragmentation of the single market, and I would propose a legislative package based on three main aspects.

First, we should make our economies more competitive by creating a favourable environment for business and innovation, and there are a lot of concrete things that we can do there. Second, we must invest in strategic sectors where the EU can still achieve a competitive advantage by fostering research and innovation. Third, we must defend free trade and diversify our trading partners. Colleagues, it is not about reacting to the Inflation Reduction Act. It’s time for our own strategy towards a European competitive advantage.

  Bas Eickhout (Verts/ALE). – Madam President, and also thank you very much Commissioner for your very clear outline on the response of Europe to the American Inflation Reduction Act. And I very much agree with your point that we need a decarbonised, low energy price continent, that that is the aim, and also very much how much there also investments are needed for that, we have to look at state aid.

But this also means homework for all of us. Homework certainly also for the Council. Tomorrow you are meeting together with the heads of state, so you have now finally to discuss a European fund because this is one of the responses that we need and this should be high on the agenda now of the European leaders. But also, more close to home, this also means that, for example, the Council should move towards a much bigger innovation fund when we are talking about revenues coming from the ETS. We will have a final trilogue maybe on Friday, Saturday, maybe Sunday. What is the Council going to do? Is it going to lower the innovation fund again? That’s going against the will of more investments.

But there is also homework for the Commission. If you are afraid that we in the end do not have enough public money, then you also need to come up with more proposals on ending fossil subsidies. You have to come forward with proposals on the taxonomy, also looking at the non-sustainable investments and not only green investments. And if you are afraid that the money will go from households to shareholders, do come up with a reform of the corporate governance moving away from shareholder capitalism. That’s homework for the Commission as well.

  Alexandr Vondra (ECR). – Paní předsedající, my několik let přemlouvám Spojené státy, aby si udělaly taky Green Deal. Konečně to udělaly a nám se to nelíbí, protože to udělaly po svém, více kapitalisticky, daňovými odpočty, které snižují cenu, nikoliv regulacemi a příkazy, které cenu zvyšují, jak se to děje tady. V Čechách tomu říkáme: když se dlouho chodí se džbánem pro vodu, tak se ucho utrhne. Nám se to samozřejmě nelíbí, protože to porušuje pravidla WTO, ale když tady roky upozorňujeme, že CBAM, který tady chystáme, porušuje pravidla WTO taky, a když upozorňujeme na to, že Američanům se to nelíbí, tak tady máme výsledek. Zase v Čechách říkáme: jak se do lesa volá, tak se z lesa ozývá. Čili ano, zabraňme obchodním válkám, na kterých nikdo nevydělá, ale musíme začít především sami u sebe.

  Tiziana Beghin (NI). – Signora Presidente, onorevoli colleghi, sono stata a Washington una settimana fa e, insieme a molti colleghi, abbiamo ripetutamente evidenziato ai nostri interlocutori americani che la nuova legge statunitense sull'inflazione viola le regole dell'OMC e avrà impatti gravissimi sulle imprese europee.

Molte delle sovvenzioni verdi che saranno introdotte in America discriminano pesantemente le industrie europee più virtuose e avanzate: parlo delle nostre case automobilistiche, dei costruttori di sistemi per le energie rinnovabili, di chi fabbrica batterie, di altre industrie ad alta intensità energetica dell'Unione europea, ma soprattutto parlo di migliaia di posti di lavoro europei in pericolo.

Non solo questa legge mette le aziende europee in una posizione di svantaggio rispetto alle rivali a stelle e strisce, ma le norme sugli aiuti di Stato vigenti da noi, nella normativa nella sua forma attuale, impediscono ai paesi membri di fare altrettanto e di offrire agevolazioni fiscali ugualmente generose alle proprie aziende. Quindi, oltre al danno, la beffa.

Dobbiamo avere il coraggio di dire agli americani che questo non è aiutare l'industria interna, ma fare vera e propria concorrenza sleale, per giunta a un alleato storico come l'Europa, e dobbiamo far capire loro che questo alleato non intende stare a guardare e, su questo, mi auguro che veramente non stia a guardare.

  Christian Ehler (PPE). – (start of speech off mic) ... the Inflation Reduction Act is a systematic challenge for the Green Deal. It’s an alternative to the Green Deal because we never delivered on the deal part of the Green Deal. We are regulating our industry. We are co-creating the regulation. This House is part of that exercise, but we are not investing to ensure in the business case for the transition. That’s what the Inflation Reduction Act is doing. The Inflation Reduction Act creates a business case for a sustainable transition. It offers an industry a deal, and our only possible reaction to it is to become furious about the deal part of the Green Deal.

Madam Commissioner, we thought you to be too intelligent to announce yet another fund. I think we have to have a better understanding of the complex transnational, sectoral ecosystems of the industry affected by the Inflation Reduction Act. We need to step up investment in innovation and develop real transition pathways for our industries. We need to mobilise all unspent cohesion funds from the previous MFF to invest in our industrial transition. We need to invest more in energy and mobility infrastructure and deepen our European market. We have to care about the deal and not steer towards America. Let’s get serious about the deal part of the Green Deal.

  Dan Nica (S&D). – Doamnă președintă, doamnă vicepreședintă Vestager, domnule ministru Bek, vreau să vă spun că este nevoie, după ce am văzut cu toții care pot fi consecințele războiului dus de către Rusia în Ucraina, de acțiuni pe care trebuie să luăm în Uniunea Europeană.

Am văzut cât de rău ne este când am constatat că ne lipsesc elemente esențiale din partea industriei Uniunii Europene, cum ar fi: nu avem cipuri, nu avem suficiente capacități de producție pe regenerabile.

Avem o nevoie de a păstra industria europeană a oțelului, a aluminiului, pentru că, atunci când avem nevoie de ele, am constatat că toate aceste lucruri lipsesc. Răspunsul Uniunii Europene trebuie să fie unul simplu: avem nevoie de un fond de suveranitate, avem nevoie de bani ca să putem să păstrăm industriile esențiale, strategice, critice în Uniunea Europeană.

Avem nevoie să continuăm acest proces fast permittivity. Nu o să putem concura pe cipuri nici cu Statele Unite, nici cu China, la câți bani aruncă și câți bani alocă ei. Dar, în schimb, putem să le spunem: veniți în Uniunea Europeană că avem un climat de afaceri prietenos, vă dăm permisele de construcție foarte repede, vă dăm acele ajutoare de stat în condiții foarte rapide, în conformitate cu legea, pentru că înțelegem nevoia de a supraviețui și noi, ca Uniunea Europeană, și toți cei care lucrează în industria Uniunii Europene.

Vă mulțumesc și succes, doamnă vicepreședinte !

Spontane Wortmeldungen

  Henna Virkkunen (PPE). – Madam President, President of the Council, Vice-President, I need to say that I am very concerned over the competitiveness of European industry. We have been far too dependent on energy supplies from outside of Europe, and now the energy crisis and increased energy prices are placing a heavy burden on our industry. At the same time, we know that the population of the EU is ageing and companies are struggling to have access to a skilled workforce. The Green and Digital Transition require a new type of skills. For that reason, we need to invest in education and skills as well as in research and development, much more than we have done.

At the same time, we need to ensure that our regulations are encouraging innovations and investments in Europe. I am expecting the Commission to take this matter seriously and to abstain from introducing any new legislation that increases the administrative burden and costs for European industry and for our SMEs.

  Mick Wallace (The Left). – Madam President, the US Inflation Reduction Act is essentially a protectionist package attempting to rejuvenate the US manufacturing industry by drawing companies to the US with subsidies and tax breaks, and giving existing US companies an advantage over the EU and others.

I’m surprised that the EU is surprised. America has been engaging in protectionism for over the last hundred years and they use it to their advantage as they see fit. And they’ve used the IMF and the World Bank to make sure that others don’t engage in it when it damages US interests. Now, I think we’re a bit taken aback by it because we’re already suffering from America taking advantage of the war. We’re supporting a US-NATO proxy war. They’re charging us four times more for their gas than they’re charging their own. And they’re giving themselves another advantage there.

Henry Kissinger once said, ‘America doesn’t have friends or enemies. It has interests.’ And it’s about time that the EU copped on to themselves and started living a more independent existence from the US.

  Enikő Győri (NI). – Elnök Asszony! Ez a törvény egy újabb oldalvágás Európa felé, és senkinek ne legyen illúziója, az USA-val szövetségesek vagyunk, de gazdasági versenytársak is. Az Unió vezetői végre ismerjék fel, hogy az energiahelyzet, a szankciók és az amerikai gazdaságpolitika mind a mi versenyképességünket rontja. Mára egyértelmű, hogy az USA nem fogja megváltoztatni a törvényt, nem fogja mentesíteni az európai cégeket. Lehetőségeink korlátozottak, ha nem akarunk kereskedelmi háborút. Importvámot bevezetni nem lenne összhangban a WTO-val, pereskedni időigényes, és a cégeink, mire jogorvoslatot kapunk, már rég áttelepültek az USA-ba.

A tagállami szubvenciók egyenlőtlen helyzetet teremtenének az EU-ban a gazdagok és szegények között. Mit kell tenni? Végre hozzuk tető alá a függőben levő szabadkereskedelmi egyezményeket, gondoljuk újra az Unió állami támogatási rendszerét. Nehézkes és lassú szabályok helyett beruházásbarát környezetre van szükségünk.

Végezetül pedig, ha a Bizottság egy új alapot akar létrehozni, remélem, azt nem adósságból kívánja megteremteni. És nagyon fontos még, hogy megszabaduljunk a saját bürokrácianövelő, kkv-kat megnyomorító szabályainktól.

  Massimiliano Salini (PPE). – Signora Presidente, onorevoli colleghi, la decisione di non ridimensionare le ambizioni europee in materia di sostenibilità e in materia anche di fair play commerciale a livello globale sono comprensibili, nonostante l'affronto ricevuto dalle misure destinate alla riduzione dell'inflazione proposte dagli Stati Uniti d'America.

Ma la condizione per cui noi ci si possa permettere di non ridurre le nostre ambizioni è che, al contempo, l'Europa decida di proteggere non in termini protezionistici, ma in termini reali, economici, i propri prodotti sui mercati globali. Possiamo rimanere ambiziosi, ma al contempo non dobbiamo lasciare da soli i nostri imprenditori nella sfida globale.

Per questo è molto sbagliato che sulla CBAM si decida di non occuparsi di export e per cui è auspicabile che nei negoziati sugli ETS, che si concluderanno venerdì, il tema dell'export entri nelle misure su cui l'Europa, che tiene le proprie ambizioni alte, deve decidere di non tenerle solo a tutela dei politici che le raccontano, ma anche delle imprese che esportano.

  Clare Daly (The Left). – Madam President, the worst is yet to come, so said the IMF in October. Europe’s economies are being decimated by sanctions. Millions of Europeans are going to have to decide between heating and eating this winter. People in Poland are burning rubbish to keep warm and the lights are winking out in German industry.

The Russians are laughing at us. The Americans are laughing at us. And I wouldn’t blame them, because when Europe decided to go to war, it ended up cutting its own throat. And then we have the Inflation Reduction Act – a coup de grâce from the US to a Europe that it knows is bleeding. So much for our like-minded partners. They’re doing what they always do: putting America first. That’s the business they’re in.

But what is the response of the EU? Nothing. We’re too busy shooting ourselves in both feet, failing to try and secure an end to the war while the US charges us four times the price for energy, having made us dependent. In a modern war, the only winner is global capital; ordinary people always lose. We should remember that the next time we talk about peace being treason.

  Henrike Hahn (Verts/ALE). – Madam President, on both sides of the Atlantic we need green transition and a green, decarbonised economy. And we neither want a trade war over the Inflation Reduction Act nor a subsidy race. And yes, the WTO can check the Inflation Reduction Act, but what we need especially is a transatlantic climate alliance and quick decisions to strengthen the green European industry.

Therefore, let’s talk about carbon contracts for difference. The first German CCfD will be granted in 2023, and we need those instruments at EU level as well. For that, we have to increase the ETS Innovation Fund and shift its focus from technology innovation to technology diffusion.

And let’s talk about state aid. We need simpler rules and faster procedures for companies, but not at ecological costs or risking the integrity of the internal market. So Europe’s industry needs can, of course, profit from the first-of-a-kind add-on to existing state rules, and we are currently working on the EU Chips Act.

And let’s talk about the Sovereignty Fund. We need a European coordinated approach to support private and public investment in green industries. But if we want an EU Sovereignty Fund, we also need to speed up the introduction of EU own resources because we need sufficient revenue sources.

(Ende der spontanen Wortmeldungen)

  Margrethe Vestager, Executive Vice-President of the Commission. – Madam President, thank you very much for the discipline, and thank you all so very much for a debate that has, I think, covered basically every corner, every possible idea, every possible view of Europe. I’ve heard Europe described as waning, as weak, as without focus, as with no targets. So please allow me to tell how I see it.

We have in Europe set a direction. We know where we want to go. We want to be a green, decarbonised continent. We want to use digital solutions to create societies where people feel at home. We have set a direction. In my opinion, we have done that together. Because one can go nowhere without knowing where you want to go. And this is, of course, why we have done so many things in order to get there.

We have survived the pandemic. And not only that, we have for the first time created a gigantic facility. We have taken steps together. The Recovery and Resilience Facility, with the plans of every Member State of investing in green and in digital transition – that is part of the answer. Next year will be a year of skills, hopefully as fast as possible because, as said by some today, we need that. Without the knowledge, without the skills, without knowing what to do, Europe will not be able to achieve where we want to go.

We have Horizon Europe, the biggest, most ambitious research programme on this planet that can take us to where we want to go in basically every field. And also in the most emerging technologies: what comes beyond 5G and 6G? Where will we want to go in quantum? The most amazing research projects translating into innovation, into businesses.

And the thing is, we know where we want to go, now circumstances are changing. And the good news is that someone wants to join us in fighting climate change. And when circumstances change, we adapt. We do not change, we do not shiver, because we know where we want to go. And I think that adaptation is really important.

And the thing that we can do on a very, very short-term basis is not to reform what we believe in when it comes to state aid, but to adapt to give Member States clear options to support strategic sectors and to do it really fast. And really fast is not after long, long, long processes. Really fast is to get it started by mid-January.

And the reason why this is so important is that investment decisions, they are taken now. That is why this signal – that Member States want to stand up to ensure that it is as attractive to invest in Europe, to stay in Europe, to be part of the supply chains in Europe that create millions and millions of jobs – that is of the essence.

But obviously, this is not enough because Member States are different. I completely agree that we should look at every fund we have. What is not being used can be reused for strategic investment. That is a prudent approach to taxpayers’ funding. But the reason why the adaptation of state aid rules must be temporary is that state aid is a direct transfer from taxpayers to shareholders, and that is 100% legitimate if there is something in it for the taxpayer – here, greening of our economy, greening of our society, jobs to maintain in Europe.

But in the long term, obviously European industry should be competitive by itself. And this is why the fund is important. This is why the greening is important. This is why the celebration of the 30 years of the single market should be a tour d’horizon of our competitiveness – to see that there are more adjustments that we need to make in order to be fully competitive. But the starting point of competitive European industry is a well-functioning single market and competition that drives innovation so that everyone knows that it’s not the taxpayers picking up the bills; it’s taxpayers investing where there is a strategic sector that needs that investment.

That is the important thing. That is the plan that we have laid out. That is a plan that can be triggered with a very, very short time horizon. And that is important to ensure that when we achieve our strategic targets, we do that with sufficient flexibility to adjust to a change of circumstance around us so that we will fight climate change, but we will do that by also enabling our industrial strategy.

And that industrial strategy has set the aim for European industry to be leaders when it comes to green and when it comes to digital. That is not a Europe that is weak. That is a Europe that builds on its strengths and does that with partners and with allies, because this is our interest and this is how we serve Europeans.

  Mikuláš Bek, President-in-Office of the Council. – Madam President, honourable Members, Vice-President of the Commission. Thank you for this debate.

Europe needs to reflect on how we can act collectively and reflect on all the possible tools we can display to make sure we remain resilient and competitive.

The European Council will have a very timely opportunity to give political guidance on possible actions. Serious efforts for finding credible solutions are underway. We must keep engaging with the US at many levels and allow the ongoing talks with our US partners to run their course

In parallel, however, we also need to do our homework. We will need to be ready to react if necessary once the Inflation Reduction Act is in place at the beginning of next year, while putting a strong emphasis on avoiding a trade war with the US at this particularly delicate geostrategic moment.

  President. – Thank you very much, personally and on behalf of this House, for your committed work during the presidency.

   Die Aussprache ist geschlossen.

Schriftliche Erklärungen (Artikel 171)

  Marek Belka (S&D), in writing. – The Inflation Reduction Act was presented in a positive way in the US – it is supposed to curb inflation, deal with taxation and focus on green energy. Nevertheless, one can perceive that the Inflation Reduction Act is based on unfair cooperation with America’s partners – such as the EU. I will name only few examples of how the Inflation Reduction Act might undermine the European-American friendship.

First, the US ties its subsidies and tax breaks exclusively to the production of raw materials, intermediate products and complete production in the US or in North America, undermining the WTO agreements. Second, the minimum tax of 15%, deviates from the international OECD negotiations. It weakens the deal by not being a truly effective tax rate, giving a wrong example and making more countries adopt tax credits or engage in aggressive competition to grant subsidies to companies to ‘compensate’ for higher effective tax rates. This is not what we all fought for. True friendship is about transparency, cooperation and facing challenges together. I call on the Commission to take steps in the discussions with the US. I hope that soon we will not have to quote yesterday’s birthday child Taylor Swift when discussing US-EU relations: ‘So take a look at what you’ve done. Now we’ve got bad blood.’

  Marc Botenga (The Left), par écrit. – Chers collègues, pourriez-vous maintenant sortir de la naïveté vis-à-vis des États-Unis d’Amérique, à qui vous faites généralement aveuglément confiance? Parce qu’à un moment où la guerre sévit sur le continent européen, les États-Unis non seulement en profitent pour nous vendre leurs cargaisons de gaz GNL à des prix absolument ridicules, avec jusqu’à 200 millions de dollars de profits par cargaison, mais en plus... ils adoptent une loi qui a clairement comme objectif d’affaiblir l’économie européenne. Ce n’est pas le comportement qu'aurait un véritable allié. Alors comment réagir ? Les solutions libérales sont "has been". Obsolètes. Qui peut encore croire qu’en inondant le secteur privé d’argent, nous allons nous en sortir? Face à l’échec des libéralisations européennes, qui ont échoué à garantir des prix de l’énergie bas, échoué à garantir la transition climatique sociale, échoué à garantir l’emploi, il est temps de changer les règles du jeu, de garantir que le profit des grandes multinationales ne soit plus le fil conducteur des décisions politiques européennes. Acceptons que certains secteurs sont trop importants pour être laissés dans les mains du marché. Prenons en main publiquement des secteurs stratégiques comme l’énergie, le transport, les médicaments, le numérique, etc. Faisons le switch.

(Die Sitzung wird um 11.53 Uhr bis zur Verleihung des Sacharow-Preises für einige Minuten unterbrochen.)

PRESIDENZA: ROBERTA METSOLA
President