Prime Minister of Spain Pedro Sanchez.
Anadolu Agency |: Anadolu Agency |: Getty Images:
DAVOS, Switzerland – Spanish Prime Minister Pedro Sanchez told CNBC on Monday that the European Union has something to learn from Washington and its new anti-inflation policies, saying he hopes a trade war between the two sides can be avoided.
“We have to learn,” Sanchez told CNBC when asked about the deflationary act, which the U.S. hopes will make it a better place for green investment.
“We need to reform some internal aspects of our industrial policy, such as state aid, reducing bureaucracy and trying to send a message to industry around the world that it is Europe, and certainly Spain, that is a good place to locate,” he added. he
The sweeping US legislation, which was approved by US lawmakers in August and includes a record $369 billion in spending on climate and energy policy, has drawn mixed reactions from the 27 EU countries. The European Commission, the EU’s executive body, previously said there were “serious concerns” about the design of the package’s financial incentives.
The EU has listed items in the US deflationary act that it believes could conflict with international trade rules. One of the biggest challenges for Europeans is the tax incentives for electric cars made in North America. This could pose challenges for European automakers focusing on EVs, such as Volkswagen.
There have been suggestions that Washington could find ways for European companies to take advantage of these green subsidies, but this has further angered some European politicians. Belgian Prime Minister Alexandre de Crowe, for example, recently accused the US of an “aggressive” campaign to lure companies to its shores with these measures.
“I hope not,” Sanchez said when asked about the possibility of a trade war between the US and the EU.
“I think that we need that dialogue to reach an agreement,” he said.
“I think this [Russia-Ukraine] “The war shows us the importance of the unity of the Western countries on the defense side as well as on the economic side,” he added.