Don’t pour new money into the EU – only improve national policies, says Dutch Prime Minister Mark Rutte.
It is the best way to prevent EU industry from being wiped out by US companies under Washington’s flagship new green subsidy scheme, Rutte told a group of journalists at the Dutch embassy’s office for the EU in Brussels on Tuesday.
“There is so much money in the system at the moment,” Rutte said shortly after meeting with European Commission President Ursula von der Leyen and Belgian Prime Minister Alexander de Crew. He also argued for deeper reforms, stressing how some European countries spend so much on their pension systems – “all the money you can’t spend on innovation and green technology.”
Rutte is often seen as the dominant leader of the so-called “frugal” group of European countries, which includes like-minded economically conservative nations. The grouping, which also includes Denmark and Sweden, has been reluctant to increase national contributions to the EU coffers – at least until the coronavirus pandemic forced them to partially adjust That line.
Ahead of a meeting of EU leaders next month, EU decision-makers are discussing how to preserve the bloc’s industrial base, as the US approves $369 billion to support green industries under the so-called Is going to start Industrial Subsidy Scheme. anti-inflation law,
Has fueled apprehensions about the US law Consequences for European Industry and called to see again rules on state aid, Another concern is that such subsidies put the EU’s single market at risk, by providing a huge advantage to countries with larger financial capacity, such as Germany, which have more room to maneuver financially.
Rutte, who recently visited Washington to meet US President Joe Biden, said: “This Inflation Reduction Act (IRA) has many consequences – but unintended.” He added that the IRA “forces us to think about how we position ourselves to remain competitive”.
On the one hand, he sees US efforts to meet climate goals as a positive development. On the other hand, he pointed to equal opportunity risks such as electric mobility. “Companies can move investment from the EU to the US,” he said, allaying a repeated fear.
But EU subsidies should remain unchanged, Rutte argued. regarding the call As for changing EU aid rules to suit the IRA, he admitted: “I can accept some changes as long as they are limited.”
Rutte was clear on his belief that no new EU money should be put on the table. “I mean, not a grant, but not a loan either,” he said. “There’s still a lot” – eg loan Recovery and Resilience FacilityCenterpiece of the EU’s pandemic recovery plan.
A draft text on which leaders will want to agree at their upcoming European Council meeting hints at opening up new sources of EU funding. The draft, seen by Politico, calls for “specifically taking forward work on the success of the definitive programme”, referring to an EU loan-based program to support employment. Ongoing by Rome et al.
Rutte insisted he would not like to see the proposal in text, which will be discussed by EU ambassadors on Wednesday.
To the question of whether he would be in favor of a new Sure program, “My answer would be that we have serious doubts,” he said.
Barbara Moens contributed reporting.