EU US subsidies as a serious threat to European industry. The meeting between EC President von der Leyen and President Biden was a step towards rapprochement. Even Kosovo has taken place in the Biden-von der Leyen meeting.
The President of the European Commission, Ursula von der Leyen, seemed satisfied after the meeting with the American President, Joe Biden. It was a very good and very constructive conversation, said von der Leyen. From the beginning of the meeting with Biden, she emphasized that the EU and the US are not only partners, but good friends. And the American president gave the highest grade to the friend from Brussels. She does a “great job,” Biden said.
EU reservations to the US subsidy program
In the one-on-one conversation, Biden and von der Leyen discussed the trade conflict between the US and the EU after the US president announced huge subsidies for green technology. The EU sees the US subsidy program as a serious threat to European industry. The conflict is not resolved, but at least the parties take a big step closer to each other. “We intend without delay to start talks on an agreement on critical minerals,” said a joint statement by the president of the European Commission, Ursula von der Leyen, and the US president. It is about the minerals needed for the production of batteries for electric vehicles.
Von der Leyen stated that the goal is to have an agreement that the minerals that are extracted or processed in the EU will be treated by the USA as minerals extracted in this country. So there should be no tax disadvantages for European raw materials in the US. This would solve the trade conflict between the EU and the US. Germany and the EU fear that with strong American subsidies, European concerns will move their production, such as the production of batteries for electric vehicles, to the US, if only they would benefit from tax advantages there.
Meeting Biden von der Leyen
Talks will begin to mitigate the negative consequences
Background of the quarrel between USA and EU is the so-called US inflation mitigation law that provides billions in climate protection investments and tax breaks for green technologies, but only if these are produced in the US. The EC president said before the meeting that it is a very good thing that there are massive investments in green technology. After the meeting, she said that she welcomes the inflation protection program. In the US, there will be no changes regarding the law to mitigate inflation, President Biden made this clear. But in its implementation, the US can take a step towards European requirements. Ursula von der Leyen and Biden have agreed to talks on how to mitigate the negative consequences for the European Union./ Dw