France, Netherlands say joint response to 'unintended consequences' of inflation law

On January 30, after a meeting with French President Macron, Dutch Prime Minister Mark Rutte said that France and the Netherlands were in the same position in dealing with the US Inflation Reduction Act (IRA), that is, to reduce the "unintended consequences" of the bill. ".

"We have agreed to first look closely at the funds available in the EU," Rutte said, adding that the EU would first commit to using existing funds to support industries hit by U.S. protectionist policies. He also added that the EU could relax state aid rules for targeted industries such as green technology "in a way that supports the internal market".

Last August, President Joe Biden signed the IRA into law, which updated the requirement for a $7,500 electric vehicle tax credit.

US IRA on procurement of battery materials will drive up costs? Research firm SNE Research pointed out that the intention of the IRA is to remove specific countries from the global power battery supply chain dominated by the United States. At present, CATL, the world's largest power battery manufacturer, has canceled its investment plan in North America.

This anxiety has long spread in South Korea, China and other Asian countries, and now it is also spreading to European countries.

In September last year, European Commission Executive Vice President and Trade Commissioner Valdis Dombrovskis revealed in an interview that the EU is evaluating whether the policy on electric vehicle subsidies in the US "Inflation Reduction Act" violates world trade. Organization (WTO) guidelines.