Investment in Technologies
EU wants to rededicate corona aid for industry
01/30/2023, 8:38 p.m
How should Europe react to protectionism in the US and China? The Commission wants to relax the rules for state aid to pump billions into the EU economy. Funds are also to be reallocated from the Corona Fund. She rules out joint debts between EU members.
In view of the competitive pressure from the USA and China, the EU Commission wants to promote climate-friendly technologies in Europe with unused money from the Corona Aid Fund. The Reuters news agency gained insight into the draft of a catalog of measures that the commission is to present on Wednesday. In particular, the “Green Deal Industrial Plan” does not provide for any new debt, which has recently been a central point of contention between the member states.
As a first measure, they should rather be allowed to promote the corresponding industries more intensively. In addition, money from the Corona aid fund worth a total of 800 billion euros should be able to be reallocated. The “green industry” – manufacturers of wind turbines, solar cells, batteries, electric cars and from the hydrogen wasteland – in Europe should be able to hold their own against competition from the USA, for example, where the government is providing 369 billion dollars for corresponding subsidies.
China also supports local corporations massively. In the EU, France, Italy and other countries have called for a new joint pot of money to finance European counter-subsidies. However, at least ten of the 27 member states rejected this, including Germany. Finance Minister Christian Lindner rejected the corresponding plans.
“We don’t need an excessive expansion of subsidies in the European Union,” he said after a meeting with EU Economic Commissioner Paolo Gentiloni. Lindner also referred to unused Corona funds. He also warned against a subsidy race with the USA. The consequences of the US subsidy package must be negotiated, which is why a planned US trip by the economics ministers from Germany and France, Robert Habeck and Bruno Le Maire, is right, said Lindner. However, there should be no trade war with the US.