Finland and six other EU countries warn the Commission about the risks associated with loosening the rules related to state aid.
BRUSSELS To the Vice-President responsible for trade policy of the Commission For Valdis Dombrovskis in the letter addressed to the Minister of Finance Annika Saarikko (central) expresses his concern regarding the trade policy tensions between the EU and the United States.
Along with Saariko, the finance ministers of the Czech Republic, Denmark, Estonia, Ireland, Austria and Slovakia have signed the letter. has seen the letter sent by the ministers yesterday.
The background is the US climate law package IRA, which has been seen as a way to attract European companies to the US. EU countermeasures are currently being discussed.
According to the authors, it is important that the EU’s response is based on a careful analysis of the situation. The EU should focus on removing bottlenecks for green and digital investments.
“Over-regulation, slow licensing procedures and disproportionate bureaucracy reduce the attractiveness of the EU,” the ministers say.
Competitiveness cannot be built on subsidies
The actions of the United States have increased the pressure on member countries to support their own companies with direct state subsidies. According to the ministers, competitiveness cannot be built on permanent or untargeted subsidies.
“This endangers the equal operating conditions of the internal market as well as the sustainability of public finances and leads to harmful subsidy competition.”
Poorly targeted government subsidies are also visible in consumers’ wallets.
“From the point of view of consumers, the subsidies are also often ineffective and increase costs”, the ministers state.
There is no need for new EU funding
Ministers reject the idea of establishing a separate sovereignty fund in the EU.
The chairman of the commission Ursula von der Leyen with the fund could be supported (you switch to another service) research, innovation and strategic industrial investments.
The signatories emphasize that there are still hundreds of billions of euros of unused funds in the current funds.
“Any additional measures should be based on a thorough analysis by the Commission of the remaining funding gap and no new funding should be introduced.”
According to the ministers, the EU should try to avoid unnecessary tensions with the United States.
“The United States has been and still is an exceptionally important partner for the EU.”
Finland has actively presented its positions on the EU’s support policy. Minister for Europe Titti Tuppurainen (sd.) discussed the matter in Brussels on Tuesday.