ROME (Bloomberg) -- The
European Union should rethink its rules to disburse state aid and have a stronger oversight of key supply chains like energy and chips to counter the U.S. Inflation Reduction Act, Italian Premier Giorgia Meloni said.
The climate-friendly tax legislation passed by President Joe Biden’s administration is in Europe’s crosshairs on grounds that it will dole out subsidies that give U.S. firms an unfair advantage.
Meloni criticized the U.S. rules and said the EU needs to work harder on becoming independent with its own supply chains for key industries. She spoke during her year-end press conference in Rome.
Earlier this month, European Commission President Ursula von der Leyen unveiled a four-point plan for how to fight back against the American law that would give member states more latitude to invest in their own companies and that would possibly redirect EU funds to firms in need.
French President Emmanuel Macron has also been vocal in asking Europeans to come up with a robust answer to the U.S. move.
The Inflation Reduction Act devotes more than $360 billion to climate-related spending, including tax breaks for making and deploying clean-energy infrastructure.