Subsidies for green industries: EU denounces unfair and “aggressive” practices in Davos


We will not hesitate to open investigations if we believe that our markets (…) are distorted by such subsidies“, launched the President of the European Commission. ARND WIEGMANN / REUTERS

Ursula von der Leyen attacked Beijing in particular, but also recalled the “concerns” aroused in Europe by the major investment plan for the American climate.

The President of the European Commission, Ursula von der Leyen, denounced Tuesday in Davos “aggressive attemptsaimed at attracting Europe’s industrial capacities, in particular those related to clean energies, “to China and elsewhere“. She particularly attacked Beijing but also recalled the “worriesaroused in Europe by the great investment plan for the climate of the American president Joe Biden (Inflation Reduction Act, IRA), which provides for large aid for companies established in the United States in the sector of electric vehicles or renewable energies .

When trade isn’t fair, we need to react more vigorously“, explained Ursula von der Leyen, during a speech delivered at the meeting organized by the World Economic Forum in the Swiss ski resort, warning: “We will not hesitate to open investigations if we believe that our markets (…) are distorted by such subsidies“. With regard more specifically to Beijing,China openly encourages energy-intensive companies located in Europe and elsewhere to relocate all or part of their production to its territory, which they do with the promise of cheap energy, low labor costs work and a more accommodating regulatory environment. At the same time, China massively subsidizes its industry and restricts market access for EU companies.“, she detailed.

However, she felt that “we will still need to work and trade with China, especially to achieve this transition» towards a cleaner and more climate-friendly industry. In addition, Europe cooperates with the United States “to find solutions”, for example to allow European companies or electric cars manufactured in the EU to benefit from the IRA. “Our aim should be to avoid any disruption in transatlantic trade and investment“, she said.

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