EU leaders plan to take action in response to the US's "Reducing Inflation Act".

The picture shows French President Emmanuel Macron.

(AFP)

[Financial Channel/Comprehensive Report] EU leaders plan to take action in response to the US Inflation Reduction Act (IRA). The EU says Washington's plan unfairly discriminates against the country's best ally. It can avoid a direct trade war with the United States.

According to comprehensive foreign media reports, EU member states believe that the U.S. "Reducing Inflation Act" is to exclude long-standing allies from the lucrative U.S. market and promote American manufacturing through "excessive" subsidies. It's not a good thing.

French President Emmanuel Macron said at a summit in Brussels on Thursday (15th) that EU leaders will discuss a response to U.S. President Joe Biden's "lower inflation bill," which could hurt European companies.

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Macron pointed out that the European Union will have to take accelerated action to stop the threat to European industries caused by the planned subsidies in the United States, and Europe must now respond strongly and respond to maintain fair competition.

Macron said there should be healthy rules of the game with fair competition and acceptance by everyone, but it is now almost certain that the Lower Inflation Act does not comply with World Trade Organization (WTO) norms.

German Chancellor Olaf Scholz said that he will discuss with his counterparts the competitiveness of the European economy and its future viability in accordance with the US "Inflation Reduction Act".

European Council President Charles Michel mentioned that Europe wants to discuss the bill with the United States to obtain exemptions like Canada and Mexico.

Since European and American allies are fighting against Russia in the Ukraine war, and China is a common competitor, the leaders of the 27 EU member states do not want to act excessively when facing US President Biden.

Macron said that the EU will not engage in heated debates with friends and allies in times of war.

The European Union hopes that negotiations with the Biden administration will weaken the most pointed parts of the "Reducing Inflation Act".

After the meeting with Macron a few days ago, Biden also extended an olive branch, revealing that he is considering making adjustments to the bill to make it easier for European countries to participate or respond.

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