BRUSSELS (Reuters) – The European Commission (EC) on Thursday cautiously welcomed announcements from the United States that European companies could partially benefit from the Biden administration’s Inflation Reduction Act (IRA).
The IRA, which notably provides for tax credits for the purchase of electric vehicles produced in American factories, raises fears that the United States will occupy the first place in the market for electric vehicles to the detriment of European countries.
The EC considered that the roadmap published Thursday by Washington indicated that professionals buying vehicles sold by European producers could benefit from tax credits, but that these credits would not apply to sales of vehicles to individuals.
According to the Commission, this plan remains worrying, with provisions that discriminate against clean vehicles and inputs manufactured in the European Union, and represents a violation of international law.
The EC also announced that a joint working group had been set up to discuss the issue, and would seek solutions to EU concerns.
“We welcome the United States’ announcement today that it will take more time to work on the subject, which will allow it to address these issues in a satisfactory manner,” the EC said.
(Report Philip Blenkinsop; French version Camille Raynaud)
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