The EUs new greentechfunding plan has sparked concerns about an escalating global subsidy race.
The initiative was launched in response to the USInflation Reduction Act.
The incentives have triggered fears that EU companies will be enticed to redirect investment and production to the US.
Critics claim the measures amount to protectionism that violates existing trade agreements.
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Europeis determined to lead the clean tech revolution.
The measures have been largely welcomed by German and French politicians but not everyones a fan.
European countries are not equal in state aid.
A particularly divisive proposal is the loosening of state aid rules until the end of 2025.
Smaller EU member states fear the move will disproportionately benefit states with deeper pockets.
Their claim has compelling evidence.
European countries are not equal when it comes to state aid, acknowledged EU competition chief Margrethe Vestageron Wednesday.
Critics are also wary of accelerating a subsidy race with the US.
Politicians in EU member states have misgivings of their own.
There are also compelling arguments in favour of the EUs approach.
Proponents of the plan say theres a big enough market on both sides of the Atlantic.
Both the US and EU, they note, can benefit from green tech incentives.
Nonetheless, the discord appears set to simmer.
French President Emmanuel Macronwarned in Decemberthat the super aggressive American legislation could divide the west.
The EUs response, however, threatens to divide the bloc.
Story byThomas Macaulay
Thomas is the managing editor of TNW.
He leads our coverage of European tech and oversees our talented team of writers.
Away from work, he e(show all)Thomas is the managing editor of TNW.
He leads our coverage of European tech and oversees our talented team of writers.
Away from work, he enjoys playing chess (badly) and the guitar (even worse).
