German Chancellor Olaf Scholz told an audience of political and business leaders that a US law majoring $370 billion in green industries should not discriminate against European businesses. at the World Economic Forum in Davos,
Coming close to accusing Washington of protectionism directly anti-inflation lawScholz said that stifling competition would ultimately harm the fight against climate change, as it would stifle innovation.
Scholz welcomed US investment in climate mitigation, “but local content requirements for some products should not result in discrimination against European businesses,” he said, adding that “protectionism hinders competition and innovation and is a major threat to climate change mitigation.” harmful to.”
Scholz said, “As a member of the European Union, we are talking to our American friends about this.”
The German chancellor also called for European law on state aid to be made “more agile and flexible”. It is code for giving national governments more leeway to support their industry with subsidies – something that is normally prohibited by EU single market rules.
Scholz said the EU is considering options to improve investment conditions in the bloc, citing the CHIPS Act, an EU initiative to boost Europe’s semiconductor manufacturing capacity.
On TuesdayVon der Leyen said the European Commission will propose a net-zero industry act that sets out a series of clean technology objectives for 2030 to compete with Washington’s massive green subsidy package.