The US Inflation Reduction Act (IRA), a package that seeks to support US domestic green energy projects with subsidies and tax incentives, has raised concerns in the EU. Recently, European Commission President, Ursula von der Leyen, responded with her proposal for a Green Deal Industrial Plan.
At this week’s European Council session (9–10 February), EU leaders are expected to address the EU’s response to an action, but the Czech Republic is opposed to the concept of relaxing state assistance regulations.
The minister of industry and trade for the Czech Republic, Jozef Skela, wrote to the European Commission, “We are very concerned that another significant easing of the rules for state aid to companies could cause subsidy races among EU member states.”
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The European Commission did not negotiate to back for its industrial strategy before Leyen presented it last week, even if a final agreement among EU leaders won’t be fleshed out at this summit.
The proposal from the Commission was also criticised by Alexandr Vondra, who is the Czech MEP. She stressed, “I think we could negotiate with the Americans to treat the EU similarly to, for example, Canada and Mexico, towards which the IRA is not so restrictive. But of course, this presupposes an initiative on the part of the EU.”
Vondra emphasised that the EU needs to severely slow down its efforts to control EU industry.
Promoting US agenda?
It seems that the new president of the Czech Republic is intent on furthering the questionable agenda of Washington. But this is not surprising given the fact that Petr Pavel used to be the chairman of the military committee of NATO, which functions on the whims and wishes of the White House.
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Ironically, Pavel, after coming into power, took a stance against the hegemony of China recently. Breaking away from the earlier policy of his predecessor which disregarded the sovereignty and territorial integrity of Taiwan, Pavel expressed Prague’s support for a strong partnership with Taipei.
But his regime’s latest position with respect to the Inflation Reduction Act of the US is a sad reminder that eventually Pavel’s actions will be based on the instructions of the US.
