Germany’s economy ministry calls for a joint EU response to the US inflation law | Bot To News

BERLIN, Dec 9 (Reuters) – Germany wants a common European response to the U.S. anti-inflation law that would include simplifying state aid rules and expanding financing options, according to a German economy ministry document seen by Reuters on Friday. .

The European Union could set up a program to promote green technology by combining different funding elements to avoid budget constraints: For example, the Innovation Fund could increase support for large-scale clean technology projects, or the European Investment Bank (EIB) could increase risk because of guarantees, he said.

The ministry’s document also suggests that member states could more firmly anchor sustainability criteria in public tenders at national level and expand or increase traditional subsidy programs, but warned against local content requirements that favor domestic industry.

According to the document, this would not only be likely to contravene World Trade Organization (WTO) law, but would also contribute to the “further erosion of the global trade order”.

While European Union countries welcome Washington’s green technology investment push, they argue that 200 billion euros ($207 billion) in U.S. subsidies linked to locally produced content could violate WTO rules by disadvantaging their companies.

The EU and Washington have set up a joint working group in hopes of resolving a dispute over the $430 billion bill.

(This story has been corrected to say the document is from the Ministry of the Economy, not the Treasury; and that the headline clarifies that the ministry is calling for a joint response, rather than citing one.)

Reporting by Christian Kraemer and Markus Wacket Writing by Miranda Murray Editing by Rachel More

Our Standards: The Thomson Reuters Trust Principles.

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