European Union competitors chief Margrethe Vestager has proposed a brand new state assist framework that will assist counter “pressing” challenges introduced by the US’ green-subsidy splash, paperwork seen by POLITICO reveal. 

In a letter dated January 13 and despatched to EU finance ministers, Vestager hits out on the U.S.’s Inflation Discount Act, a $369 billion climate-friendly subsidy bundle. Brussels views this system as a protectionist transfer that would probably breach worldwide commerce guidelines.  

The U.S. invoice “dangers luring a few of our EU companies into shifting investments to the U.S.,” Vestager writes.

In response, she suggests a brand new “short-term disaster and transition framework,” which might simplify state assist guidelines for inexperienced tasks, and notably for “all renewable vitality applied sciences.”

Hydrogen and electric-vehicle sectors might additionally get exemptions for state assist notification necessities underneath the bloc’s Basic Block Exemption Regulation.

The brand new framework, Vestager provides, would additionally supply “anti-relocation funding assist” in a bid to maintain companies from leaving the bloc to hunt extra favorable circumstances overseas. 

“I envisage devoted provisions to help new investments in manufacturing amenities, together with tax breaks,” Vestager writes.  

Vestager is looking for suggestions from member international locations on her modifications, with a deadline of January 25 for his or her responses. EU finance ministers will meet in Brussels on Tuesday.