The United States is using a 2022 inflation reduction law passed in the summer of 2022 to lure European companies to the other side of the Atlantic and thus attract investment, Belgian Prime Minister Alexandre De Cros said in a "very aggressive way."

“The United States, our partner... They turn to our manufacturers and ask: “Why are you investing in Europe?

Come to the USA."

They are very aggressively urging German and Belgian companies: "Don't invest in Europe, we have something better," the Financial Times quotes him as saying.

“You can call it fair play, but you don’t have to say later: “Oh, we forgot about the consequences for Europe.”

I think they were very well aware of what consequences this could have, ”the politician emphasized.

De Kro believes that the only answer in this case should be the introduction of similar subsidies in the European Union.

"We ask for justice"

Recall that the Inflation Reduction Act was signed by Joe Biden in mid-August.

It involves the provision of significant subsidies to manufacturers of electric vehicles, batteries and energy equipment, provided that they are manufactured in the United States.

This initiative caused a sharply negative reaction in Europe.

For example, European Commission Executive Vice President Valdis Dombrovskis noted in November that the US law contains elements of discrimination that will harm EU companies, their ability to export to the US, and Europe's ability to compete fairly with US products in third-country markets.

“These issues cause serious concerns for the EU, and I, like many of my colleagues, have repeatedly drawn the attention of our interlocutors from the United States to them ... We ask for justice.

We want and expect European companies and exports to be treated in the US in the same way as American companies and exports in Europe,” Dombrovskis stressed.

Vice-Chancellor and Minister of Economy of Germany Robert Habek then said that the US law is contrary to the norms of the World Trade Organization.

The head of the European Commission, Ursula von der Leyen, promised in early December to respond in an "adequate and carefully balanced manner" to the American initiative, which, according to her, could lead to unfair competition.

She later called for the creation of a special European Sovereignty Fund aimed at supporting the EU economy.

One of the main critics of the American law to reduce inflation was French President Emmanuel Macron.

In October, he said that the European Union is obliged to introduce counter-protectionist initiatives to support its producers.

“Like the Americans, we need a Buy European law, we need to keep our subsidies for European manufacturers ... China protects its industry, the US protects its own, and Europe is like a gateway,” Macron said.

  • Emmanuel Macron and Joe Biden

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  • © Susan Walsh

During his visit to the United States at the end of November, the French leader, talking with American parliamentarians, called the law adopted by them "super-aggressive."

And later he also said that Europe needs to develop a strong response to such actions from the United States.

In turn, the head of European diplomacy, Josep Borrell, admitted in early January that Brussels cannot compete with Washington in terms of providing state support to companies.

“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, pointing out that the EU does not have fiscal opportunities comparable to the US.

"Totally dependent" client "

Analysts, in turn, believe that the United States is well aware that Europe cannot support its companies with the help of similar measures, and therefore deliberately lure manufacturers from the EU to its territory. 

“The US is making Europe a completely dependent “client”.

This process has been going on for some time, but against the backdrop of the situation around Ukraine, it has accelerated.

Now is a very opportune moment to deprive Europe of all remnants of freedom, including economic freedom.

All this will lead to the fact that the EU countries will be even more dependent on Washington, ”said Vladimir Bruter, an expert at the International Institute for Humanitarian and Political Studies, in an interview with RT.

  • BASF plant in Germany

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  • © Michael Probst

Oleg Matveychev, Deputy Chairman of the State Duma Committee on Information Policy, Information Technologies and Communications, called the claims of European countries against the United States absolutely fair, but doubted that in the current circumstances Washington would hear them.

“Belgium is far from the first country to express dissatisfaction.

Similar statements were made in France, Germany, Austria and so on.

Everyone understands that the US is waging an economic war against Europe under the guise of a so-called alliance.

At the same time, Washington has been doing this almost since the formation of the EU.

It is worth remembering that when the European Union signed all the most important agreements and introduced the euro zone, the bombing of Yugoslavia and its division immediately began, which destabilized the region, ”Matveychev recalled in a conversation with RT. 

According to him, Washington constantly puts pressure on Europe in one form or another in order to prevent its strengthening as a separate entity of the world economy competing with the United States.

“The Americans are doing it absolutely consciously.

Moreover, Washington shared its plans with the British elites, as a result of which Brexit occurred and the UK escaped from a sinking ship, ”the expert said.

The adoption of a law to reduce inflation is far from the first attempt by the United States to weaken Europe economically, which will inevitably lead to political subordination, the political scientist is sure.

“Barack Obama once proposed to the EU the so-called transatlantic partnership, in which American companies would become uncontrolled by the national courts of European states, which would lead to the plundering of the economy and their dominance in the EU markets.

Trump demanded large defense spending under the auspices of NATO, and, consequently, orders for the American military-industrial complex.

Biden is acting differently, asking Europe to be more involved in the situation in Ukraine and renounce Russian resources.

Sanctions, counter-sanctions, price ceilings - all this causes enormous damage to the European economy, ”summed up Matveychev.