The debate on responses to the US Inflation Reduction Act (IRA) continued in the European Parliament on Wednesday 18 January with Swedish Minister for EU Affairs Jessika Roswall, whose country holds the EU Council Presidency, and European Commissioner for Internal Market Thierry Breton. While all agree on the need to act to support European businesses in the green transition, the method of doing so is not unanimous. The groups were reacting to the recent announcements by the President of the European Commission, Ursula von der Leyen (see EUROPE 13101/9).
The Swedish minister also contributed to the debate by reiterating what she had already said the previous week in Stockholm: short-term measures should be avoided, according to her (see EUROPE 13097/4), and the largest political group in the House, the EPP, agreed. Several of its MEPs have warned that overly flexible state aid rules could undermine the integrity of the internal market.
The idea of a sovereignty fund does not convince them either. “A debt-financed instrument does the opposite of increasing the Union’s sovereignty”, said Markus Ferber (EPP, German). His colleague Esther de Lange (EPP, Dutch) added: “We hope that the European Commission’s future proposal will be targeted, steering for the highest potential impact, not just highest amount”.
A race for subsidies inside and outside the EU is not desirable for the Greens/EFA either, nor for Renew Europe, which however welcomes the Commission’s announcements more positively.
Group leader Stéphane Séjourné (Renew Europe, French) said he hoped for swift proposals from the Commission. He added: “It would be good if the political groups here could adopt the texts before the summer”.
Among the Socialists and Democrats, the announcements are also perceived positively. However, MEP Agnes Jongerius (S&D, Dutch) insisted on the need to add conditions to a potential sovereignty fund: “For example, companies need to commit to fair pay. We don’t want public funds to be misused for the wrong things”.
The European Parliament is expected to vote on a resolution on this issue on 2 February. (Original version in French by Léa Marchal)