The US Inflation Reduction Act (IRA) is based on a different philosophy than the EU's, he said, as it provides government subsidies to green-tech companies on American soil and does not include a cost for carbon emissions.
“We are unwilling and unable to compete on the basis of government subsidies, because this will harm the global economy,” Borrell wrote in his blog.
He noted that the EU does not have fiscal opportunities comparable to the US.
Earlier, French President Emmanuel Macron expressed confidence that European countries need to achieve greater autonomy from the United States, including within the framework of the North Atlantic Alliance.
Die Welt wrote that the EU's response to the United States' Inflation Reduction Act (IRA) threatens a trade war between the allies.