America’s green subsidies are causing headaches in Europe
A transatlantic trade rift is brewing
For years, Europe has nagged the world to follow its lead in cutting carbon emissions. In August America’s federal government at last heeded its advice; President Joe Biden signed a jumbo package of green subsidies. Far from pleasing Europe, the “Inflation Reduction Act” (IRA), which will dole out $369bn in corporate bungs as early as January, has caused a transatlantic spat. Talk of a trade war pitting Europe against America is brewing even as both are allies in a real war in Ukraine. By mimicking policies that many Europeans favour, America has stoked strife among its friends.
This article appeared in the Europe section of the print edition under the headline “United States, divided Europe”
Europe December 3rd 2022
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- How Hungary used citizens’ covid data to help the ruling party
- Views of Angela Merkel’s 16 years in power have become harsher
- The Spanish are too grumpy about their politics
- Europol pulls off a massive cocaine bust
- America’s green subsidies are causing headaches in Europe
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