European Union (EU) Council President Charles Michel and EU Commission President Ursula von der Leyen spoke at the press conference held after the EU Leaders Summit in Brussels.

Noting that they have extensively evaluated the issue of the reduce inflation law in the US, Michel said, “We want to meet with the US to get waivers of the reduce inflation law.”

Recalling that Canada and Mexico are exempt from such a law, Michel said: “We are determined to establish an active dialogue with the United States to protect the interests of the European business community.”

‘WE NEED STRATEGY TO SUPPORT TRADE’

Michel noted that EU leaders have asked the Commission to present a proposal by the end of January that mobilizes instruments at the national and European level to support the competitiveness of European trade.

Pointing out that decisions made by the US to support its own businesses should not negatively affect companies in Europe, which is currently experiencing an energy crisis, Michel said: “We need an ambitious strategy that supports our competitiveness to protect our structure economically and socially in Europe, and delivers quickly.” he said he.

‘MUST BE CONVINCED TO INVEST IN EUROPE’

EU Commission President von der Leyen said: “We need to convince cutting-edge industries in the EU to invest here.”

Von der Leyen stated that the EU must take steps to maintain its global leadership in clean technology sectors and that they are working with the Biden administration in the US on the most worrying aspects of the disinflation law.

Noting that the EU must change the rules of public support and make it simpler, more predictable and faster, Von der Leyen stressed that the Commission will quickly complete its work and prepare concrete proposals.

LAW TO REDUCE INFLATION

The Inflation Reduction Act, which includes comprehensive health, weather and tax regulations aimed at reducing inflation in the US and supporting various investments, is a topic of debate in Europe.

The law includes plans to invest approximately $400 billion in clean energy and strategic sectors in the United States.

The law, which also provides incentives for the purchase of electric cars with tax cuts, includes regulations such as tax cuts of up to $7,500 for electric vehicles that use batteries produced in North America and that contain minerals from mines in this region.

The EU is concerned that the new regulation, which makes tax cuts contingent on US-produced content, will put European car companies and manufacturers at a disadvantage in the field of green economy, including batteries and renewable energy equipment.

For Europe, which is going through a difficult period with the energy crisis, high inflation and possible recession, the main risk is that the industry will be left behind. (AA)