Chinanews.com, Beijing, December 7 (Jiang Li) In the past few days, the US "Inflation Reduction Act" has triggered more and more protests and dissatisfaction among European allies.
Following French President Macron's visit to the United States and warning that the bill "will divide the West", French Finance Minister Le Maire even proposed that the best response is to have a European "Inflation Reduction Act".
Data map: On December 1, French President Macron delivered a speech at the White House dinner.
At the moment when international political, security, and economic crises are superimposed and intertwined, the United States willfully launched the "Inflation Reduction Act" in an attempt to cut European leeks, but Europe does not want to continue to pay for it this time.
This bill, which "hurts" European allies, is full of the protectionist tendencies of US economic policy.
Although the U.S. claims that the bill is aimed at easing inflation and reducing deficits, the move is actually to encourage domestic and overseas companies to transfer their production bases to the U.S., which essentially damages European industries, protects U.S. domestic manufacturing, and enhances U.S. competitiveness in the global market. .
At present, the adverse impact of the "Inflation Reduction Act" on Europe has already appeared, and some European companies have planned to transfer production to the United States.
According to Reuters, Peter Carlsson, chief executive of Northvolt, a European battery factory headquartered in Sweden, said at the end of November that if it sets up a factory in the United States, it will receive 800 million euros in aid. Provided 4 times, therefore, plans to set up factories in northern Germany was forced to postpone.
In response to the bill, European Council President Michel said on the 3rd that a reciprocal and level playing field is crucial, but the US government has always given priority to the US's own economic interests.
During Macron's visit to the United States, he directly criticized the bill as "dividing the West."
But U.S. President Biden responded that "the United States will not apologize for this."
It is the consistent style of the United States to protect its own interests, regardless of the impact on other countries, including so-called allies and partners.
This time, in order to ease domestic inflation, the United States did not hesitate to sacrifice the interests of its European allies. This is another example of the "America First" hegemonic thinking.
Although U.S. President Joe Biden has promised to fine-tune relevant policies at the expense of Europe, given that the Democrats have lost the House of Representatives, it may be difficult to change the bill, and it is almost impossible for European countries to benefit from it.
While the United States claims that Europe is an important ally, it also wants to cut European leeks.
Since the Ukraine crisis, high energy prices have put European industries under tremendous pressure, and many companies have begun to transfer production capacity to the United States, where energy prices are stable and relatively cheap.
At the same time, while selling high-priced natural gas to Europe, the United States promulgated industrial subsidy policies to squeeze out European competitors.
The United States has benefited from the Ukraine crisis, while Europe is paying for it.
In addition to the "Inflation Reduction Act", the United States also launched the "Chip and Science Act", spending 52.7 billion US dollars to provide subsidies for companies investing in chip factories in the United States, forcing the EU to accelerate the promotion of chip industry subsidies, ensuring the stability of the local semiconductor supply chain and reducing external dependence .
In addition, the United States has forcibly intervened in issues such as Ukraine, Syria, Afghanistan, and Iraq, causing a large number of refugees to flow into Europe, and Europe is forced to bear enormous humanitarian and economic pressure.
This time the United States continues to pursue the idea of "America first" and ignores the interests of Europe, and the EU does not intend to continue to bear the price of the United States' willfulness.
If the United States fails to respond to Europe's interest demands this time, the European Union will inevitably take retaliatory measures. The rift between Europe and the United States will expand from the economic field to the political field, and the U.S.-Europe alliance will surely face new challenges.
EU refuses to be victim of arbitrary US policies
By John Lee
(ECNS) -- French Finance Minister Bruno Le Maire said on Monday that the best response to the American Inflation Reduction Act (IRA) is European IRA, after its President Emmanuel Macron warned that the US IRA may "split the west".
With international political, security and economic crises intertwining, the US seeks to benefit from the EU through the IRA, though the latter won't swallow the bitter fruit this time.
The IRA, which “hurts” the EU badly, reveals the protectionism of US trade policies.
Although the US seemingly aims to alleviate inflation and reduce its deficit, it encourages domestic and overseas enterprises to move their production bases to the US In essence, it will further protect US manufacturing industries and enhance the country's global competitiveness of industries in the damag .
Adverse effects on Europe have already appeared, with some of its enterprises planning to open factories in the US instead of Europe.
According to Reuters, Chief Executive Peter Carlsson said that under the IRA, Swedish-based Northvolt could get up to 800 million euros ($836 million) in US aid to build a factory producing batteries for electric vehicles, which is four times what the German government is offering. As a result, the company is considering delaying its plans to build a factory in Heide, northern Germany.
Charles Michel, president of the European Council, said on Saturday that a level-playing and reciprocal field is essential, but that the US government has always given priority to its own economic interests. Macron even said the IRA may "split the West."
The US government has been consistent in neglecting its so-called allies and partners to safeguard its own interests. It made the same choice again this time, with the interests of its European partners sacrificed to alleviate its domestic inflation. This is another example of its hegemonic thinking of "America first."