(with new information on the meeting from the US side)
WASHINGTON (dpa-AFX) – A US law that provides for billions in investments in climate protection and subsidies for US industry has triggered great concerns in Germany and the EU about competitive disadvantages. US President Joe Biden and EU Commission President Ursula von der Leyen want to discuss defusing the trade conflict at a meeting in the White House on Friday (8 p.m. CET). The problem from a German and European perspective with the so-called Inflation Reduction Act (IRA) of the USA: Many subsidies and tax credits are linked to the fact that profiting companies use US products or produce them themselves in the USA.
At its core, the IRA pursues a set of goals shared by the United States and the European Union, a senior White House official stressed ahead of the meeting. So there is agreement that “historic investments” are necessary to achieve the climate goals. They want to invest in the expansion of clean energy and related jobs and ensure stable supply chains. Appropriate measures are taken “alongside allies and partners”. The aim is for both sides to communicate their approaches to the other and not get into a competition.