Seven EU countries oppose new EU funding in response to US subsidy plan
BRUSSELS, 27 january (Reuters) – Europe The commission is new to the green industry European Union Plans to create the financing face growing opposition in the 27-nation bloc, as seven EU countries outright rejected the idea in a letter to EU executives.
The letter, seen by Reuters and dated January 26, was signed by the Czech Republic, Denmark, Finland, Austria, Ireland, Estonia and Slovakia, and Europe It was addressed to Valdis Dombrovskis, the vice-president responsible for trade of the Commission.
Although Germany, the Netherlands and Belgium did not sign the letter, they oppose any new joint EU borrowing, EU leaders said on February 9.10When they meet to discuss these plans in , they further expand the list of countries that can vote against these plans.
10 the whole country says the EU should use already approved funds instead of seeking more money.
The Commission, which is responsible for fair competition in the EU, which covers 27 countries, believes that China and USANew to equalize the skills of poorer and richer countries to help their green industries against the competition of funds needed.
EU officials especially USA369 to companies producing electric vehicles, batteries, wind turbines or hydrogen in billion dollars subsidy offer who did USAThey are worried that the Inflation Reduction Act will attract EU firms.
Struggle to keep Europe attractive for green industry Energy far higher in the EU than in the US prices and often made more difficult by lengthy EU green investment permitting processes.
European Commission President Ursula von der Leyen last week to make life easier for the EU’s green industry law he said he would prepare and support it with state aid and the European Sovereign Fund, as well as provide a more urgent funding “bridging solution”. discourages businesses from moving to the United States.
But in the letter of the seven countries, the EU initially 800 billion The eurozone’s post-pandemic recovery and resilience fund (RRF) said it had to spend the money it agreed to raise through grants and cheap loans.
“We need to make sure that the economy better absorbs the already agreed EU funding,” the seven countries said. “A total of 390 RRF grants so far billion from euro only 100 billion euros were used.”
“Besides, it is still unused in the RRF credit opportunities are available. Any additional measures should be based on a comprehensive analysis of the remaining funding gap by the Commission and no new funding should be introduced,” they said.
Germany, the Netherlands and Belgium share this view, pointing to unused loans from the recovery fund that governments do not claim because they prefer grants.
Instead of looking for new money, the EU should cut red tape for investments and make progress on the Capital Markets Union, a project that has dragged on since 2014, the letter says.
The Capital Markets Union will increase the use of private capital within the EU.
($1 = 0.9179 euros)
Reporting by Jan Strupczewski; Edited by Bradley Perrett
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2023-01-27 11:46:51
Source – reuters
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