The EU must not harbor any illusions.
The subsidy race with the USA has begun – and the Europeans are on the short end of the stick.
The EU cannot keep up with the money that the Americans provide for their industry, from battery to chip manufacturers.
The “Chips Act” now passed by the Council of Ministers does not change that either.
With 43 billion euros to promote production in Europe.
But you can only get the total with creative bookkeeping.
That's nothing compared to the $50 billion US Chips Act and $500 billion Inflation Reduction Act.
Calls for a new – debt-financed – EU fund will become louder.
Instead, Europeans should invest in targeted areas where dependence on raw materials and products (from China) can cause them serious problems.
The "Chips Act" can be a warning example: It is intended to promote all types of chips, from high-end to industrial products.
If you can't and don't want to waste huge sums of money, you have to rely on quality instead of quantity.