EU response to the US Inflation Reduction Act

8.3.2023

Question for written answer  E-000802/2023
to the Commission
Rule 138
Jordan Bardella (ID)

Under the Inflation Reduction Act, which was passed by the United States Congress last summer, almost USD 400 billion will be directed towards financing the energy transition in the US over the next 10 years. The Act extends a USD 7 500 tax credit for buyers of new electric cars and for wind energy support schemes, provided that the products concerned are manufactured in the US.

During a recent visit to the US, President Emmanuel Macron spoke of ‘super‑aggressive’ measures which ‘risk fragmenting the West’. Commission President Ursula von der Leyen also stated that the Inflation Reduction Act is ‘raising concerns here in Europe, against a very particular backdrop for our industry and economy.’

Instead of deploring the fact that the US is promoting the growth of its own companies and job market in a globalised world at a time of crisis, would the European Union not be better off taking this opportunity to acknowledge how naive it has been in recent years? Will the EU finally think about drawing up policies which prioritise reindustrialisation and employment on its own soil?

Submitted: 8.3.2023