In light of today’s EU summit, tensions are mounting between European governments over Brussels’ response to the US subsidy maxi plan for the Stars and Stripes industry. Faced with the Joe Biden administration’s Inflation Reduction Act (IRA), a nearly $370 billion program, the European Union initially reacted with bewilderment and compactness. The “discrimination” of European companies, excluded from tax credits allocated to US rivals, had created the need for a new Recovery Fund, known as the European Sovereignty Fund, to respond to Washington with a financial instrument of the same size and size. Help countries with low budget margins, starting with Italy. But six months after the IRA was introduced, the new EU funding remains a mirage.
unbalanced help
The industrial plan for the Green deal, announced by the Commission in Brussels’ response to American outrage, actually provides a new green light for state aid, but postpones the Sovereignty Fund discussion until the summer, when countries are loudly demanding it. they have less money to support their industry. Let’s suffice to say that 80 percent of the 540 billion euros provided to companies authorized by Brussels until last 31 December went to French and German companies, while Italians had to settle for less than 5 percent. Hence the Giorgia Meloni government’s concern about a response that supports Italy’s more financially sound states and risks shattering the common market.
The frugals are back
Instead, the proposal for a new Fund for European sovereignty is thwarted by so-called ‘frugal’ countries such as the Netherlands and Sweden, who are afraid to finance the necessary aid to Southern European states. In some ways, it is reminiscent of the epidemic. With the difference that in this case it is not a virus that we need to form a common front, but a simple matter of economic competition where the same EU countries compete with each other.
pressure for help
Having received the postponement of any discussion on ‘recovery bis’ until the summer, the Italian government is now trying to get maximum flexibility from Pnrr in the use of European resources, but not just to convert these funds into aid payable to companies. . “We need a “strong willingness to be flexible in the use of available resources” if we start to think about changing the rules about the aid system,” European Affairs Minister Raffaele Fitto said. EU summit.
Power Factor
“From our point of view this issue is not marginal, as it may be related to a possible use of very important resources such as compliance and Pnrr in this direction. They will fall because we do not have autonomous capacity.” in a flexible use” , Fitto stated. In support of this hypothesis, the minister said that according to the Italian government, “7.5% of the compliance resources are closely linked and in line with Repower AB’s estimates, namely the Commission’s plan to make EU energy self-sufficient”. Elements Meloni could bring to the leaders’ table to ask for the ‘reuse’ of European funds that he cannot spend in the form of aid to Italy’s economy.
Source: Today IT
Karen Clayton is a seasoned journalist and author at The Nation Update, with a focus on world news and current events. She has a background in international relations, which gives her a deep understanding of the political, economic and social factors that shape the global landscape. She writes about a wide range of topics, including conflicts, political upheavals, and economic trends, as well as humanitarian crisis and human rights issues.
