Layne and Biden made progress on subsidies

European Commission (EC) President Ursula von der Leyen on Friday announced that an agreement had been reached with US President Joe Biden for a dialogue on incentives for the cleantech industry. This became clear after their meeting at the White House, Reuters reported.

The two announced progress in resolving the transatlantic trade dispute and renewed their commitment to support Ukraine against Russia.

Describing her meeting with Biden as “very good”, von der Leyen said they agreed to work to provide access for critical EU raw materials to the US market.

Von der Leyen said the European Union (EU) welcomed the US Deflation Act because it provides a huge investment in the transition to green energy.

However, we recall that it was this law that worried European nations that the new US subsidies would harm their economies.

At issue is Biden’s $430 billion deflationary bill, which offers massive subsidies for US-made products and is aimed at addressing the climate crisis and promoting renewable energy.

During a December visit by French President Emmanuel Macron to the White House, Biden said bills aimed at boosting US renewable energy and semiconductor manufacturing had problems that could be fixed.

The EC last month unveiled its Green Deal industrial plan on Wednesday in response to the US measure, with increased levels of state aid to help Europe compete as a manufacturing hub for cleantech products.

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