Italy urges EU to push back on US law – media – Reuters

Italian Prime Minister Giorgia Meloni has called for the European Union to become more economically independent following a new US law that puts manufacturers in the bloc at a competitive disadvantage, Bloomberg reported on Thursday.

Speaking at his end-of-year press briefing in Rome, Meloni urged the EU to build its own supply chains for key industries in response to the US Inflation Reduction Act (IRA ), a $360 billion spending bill that President Joe Biden signed into law in August. , depending on the medium. The bloc must also revise its rules on state aid to manufacturers and strengthen oversight of supply chains for industries such as computer chips, automakers and alternative energy, Meloni reportedly said.

US legislation provided for a spending spree in alternative energy infrastructure, including tax breaks for manufacturers in the sector. It weighted subsidies for electric vehicles according to the models and batteries produced in the country. EU leaders, including French President Emmanuel Macron, have criticized the law, warning it could « fragment the West ».

Meloni argued that the IRA discriminates against European companies. Italian Economy Minister Giancarlo Giorgetti warned earlier this month that some companies were already considering moving factories to the United States, which would be « a disaster. »

European Commission President Ursula von der Leyen suggested this month that the EU should respond to the IRA by providing funding to businesses in need and giving member states more leeway to invest in their own manufacturers. The controversy comes at a time when European economies are already plagued by energy shortages and other effects of US sanctions on Russia over the Ukraine crisis.

Commenting on the matter earlier in December, Russian President Vladimir Putin said that “Today, the EU’s main partner, the United States, pursues policies leading directly to the deindustrialisation of Europe.”

Meloni told reporters she would seek to meet with representatives of California-based chipmaker Intel to discuss possible incentives for a new factory in Italy, a development she considers « highly strategic ».