USA (bbabo.net), - Vice-Chancellor - Minister for Economic Affairs of Germany Robert Habek called on the European Union to give a "strong response" to the controversial US law to reduce inflation. A similar point of view was voiced by the head of the German Ministry of Economy today, November 29, during an industrial conference, broadcast on the website of the ministry.
“The United States decided to build the economy of the future and initiated a major investment program during a period of high inflation. The most advanced markets in the future will be green markets,” the minister acknowledged.
However, as Habek noted, Washington's intentions also have a "reverse, dark" side.
“The new rules that products must be made in the United States are contrary to the rules of the World Trade Organization (WTO),” the Vice Chancellor stated.
In this regard, the head of the German Ministry of Economy called on the EU to develop a European plan, which, according to Habek, would be a "strong response" to Washington's recent controversial initiative.
“We are talking about preserving the space for doing business and about the framework conditions that will allow industrial companies to stay in Germany and continue production on the territory of the country,” said the Vice Chancellor.
As the head of the Ministry of Economy stressed, the coming year is likely to be marked by the intensification of efforts in the field of economic policy. At the same time, Khabek did not rule out the possibility of resolving contradictions with Washington through negotiations.
“The German government will not allow the destruction of the industrial base and the de-industrialization of the country,” the vice-chancellor concluded.
bbabo.net recalls that US President Joe Biden in August signed a law to reduce inflation, providing for investments of $ 369 billion in climate and energy policy, as well as benefits in the field of energy supply for enterprises opening in the United States. The law comes into force on January 1, 2023. Germany and France, the most economically developed countries in the EU, believe that the new package of measures is protectionist and negatively affects European industry, as it encourages European companies to transfer business to the United States.
The head of the German Industrial Union, Tanya Gönner, said a few years ago that every fourth German company is “thinking about moving production abroad” due to high energy prices in Germany. At the same time, the support measures promised by Washington only stimulate German manufacturers to take this prospect more seriously.
As the journalists of the German portal Focus noted, the measures initiated by Biden have already led to the fact that the German economy fell into the "American pincers", and Washington, with its protectionist initiatives, once again demonstrated its readiness to ensure national welfare at the expense of Europe. According to Politico magazine, the American inflation law could lead to a transatlantic trade war as Europe intends to prepare "worthy countermeasures".