Leaders.com
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
Public Policy Europe

EU embracing its own Inflation Reduction Act (Photo by Mohammed Zarandah/Anadolu Agency via Getty Images)

By Tyler Hummel Leaders Staff

Tyler Hummel

Tyler Hummel

Tyler Hummel is a news writer for Leaders Media. He was the Fall 2021 College Fix Fellow and Health Care...

Full bio


Learn about our editorial policy

Dec 5, 2022

EU Plays Catchup To U.S. Subsidies 

European Union (EU) politicians are attempting to subsidize their own industries as a response to the Inflation Reduction Act’s effects on the European economy. 

Key Details

  • The European energy crisis continues to stifle the economies of each member state and the former member state of the U.K. 
  • Low profitability is threatening thousands of businesses while manufacturing and productivity have decreased due to high costs. 
  • In a bid to protect European industry, the EU is preparing subsidies to protect its businesses from American subsidies and investments, Politico reports.  
  • Politicians in Brussels are rushing a “European Sovereignty Fund” to subsidize green investments on the continent, retaining investors, and protecting sensitive industries from rival markets—similar to the Inflation Reduction Act. 

Why it’s Important

The European economy is facing threats from both Russia and the United States. Russia’s war against Ukraine continues into its tenth month, which has complicated Europe’s supply of oil and natural gas supplies for the immediate future—skyrocketing inflation and causing governments to implement energy rationing. The U.S. government is rolling out billions of dollars in clean-energy subsidies and tax credits, drawing investors away from the continent. 

The EU is preparing subsidies for vital industries, particularly those that will help bolster Europe’s commitments to clean energy and fighting climate change.  

“EU officials fear that businesses will now face almost irresistible pressure to shift new investments to the U.S. rather than Europe. E.U. industry chief Thierry Breton is warning that Biden’s new subsidy package poses an ‘existential challenge’ to Europe’s economy,” says Politico. 

“Senior officials said the EU had to act extremely quickly as companies are already making decisions on where to build their future factories for everything from batteries and electric cars to wind turbines and microchips.”

The Problem 

The U.S.’s green policies are decidedly focused on domestic job production and spending, partially as a reaction to overreliance on Chinese manufacturing prior to the COVID pandemic, in addition to President Joe Biden pushing for more domestic jobs. The effect though has been negative for major markets such as electric vehicle production in Germany and France, Politico reports.  

As we previously reported, the EU and U.S. both fear the possibility of a trade war caused by rivaling protectionist policies implemented to build up domestic production. A trade war or tariff war would undermine both economies and set back green energy goals. 

Home / News / EU Plays Catchup To U.S. Subsidies 
Share
FacebookTweetEmailLinkedIn

Related Stories

Wall Street Makes $100 Billion Bet on Weight Loss Pills

by PJ Howland Leaders Staff
Investing

Oct 25, 2023

Ozempic

Investor optimism around a potential blockbuster obesity drug by Structure Therapeutics led to soaring share prices across the weight-loss pharma sector.

Key Details

  • Structure Therapeutics' stock jumped 35% after reporting positive results from early clinical trials of a once-daily weight-loss pill.
  • The experimental drug helped participants lose about 5% of their body weight over one month without side effects, although there are concerns with Ozempic.
  • Analysts predict the global anti-obesity medication market could reach sales of $100 billion by 2030, up from $71 billion currently.
  • With promising growth prospects, investors are betting on companies developing new weight loss drugs like Structure, Eli Lilly, Novo Nordisk, and Pfizer.

Go deeper

FacebookTweetEmailLinkedIn

Seattle Takes The Crown For Advanced Tech Talent

by PJ Howland Leaders Staff
Tech

Oct 24, 2023

Seattle tech talent

Seattle has emerged as the metro area with the most advanced tech talent, beating out tech hubs like San Francisco and Silicon Valley.

Key Details

  • According to a new ranking by the Burning Glass Institute, Seattle has the highest proportion of advanced tech workers compared to other cities with similarly sized tech workforces.
  • The ranking evaluated 60 million high-paying, in-demand tech job postings and histories to identify cities with cutting-edge roles like AI and cybersecurity rather than legacy tech positions.
  • With tech giants Amazon and Microsoft headquartered in Seattle, the city edged out the San Francisco Bay Area, Boston, Austin, and Raleigh on the list.
  • The report found that demand for software developers and IT support specialists has declined over the past five years as companies seek more specialized tech talent.

Go deeper

FacebookTweetEmailLinkedIn

More Americans Can’t Keep Up With Car Payments

by Colin Baker Leaders Staff
Loans and Borrowing

Oct 23, 2023

car loans, used cars

A record number of Americans are behind on their car loan payments as higher interest rates and prices weigh on consumers.

Key Details

  • According to data from Fitch Ratings, 6.11% of car loans were at least 60 days delinquent in September, the highest since tracking began in the early 2000s.
  • Some interest rates on used cars can rise to as much as 21%, according to Bankrate.
  • Soaring prices and rising interest rates are squeezing consumers, making it difficult for some to keep up with their auto loans.

Go deeper

FacebookTweetEmailLinkedIn
Chevron Gas Deal
Markets

Oct 23, 2023

Chevron Makes $53 Billion Deal Amid Surging Gas Prices

by PJ Howland Leaders Staff
nike logo
Company Culture

Oct 20, 2023

Nike to Require More In-Office Days From Employees

by Colin Baker Leaders Staff
blue collar workers
Retirement

Oct 20, 2023

Explaining The ‘C+ Grade’ Retirement Ecosystem in The United States

by PJ Howland Leaders Staff

Recent Articles

Hiring

Nov 1, 2023

Learn the Winning Answers to the Most Common Phone Interview Questions

Come to your next phone interview fully prepared

Personal Growth

Oct 30, 2023

85 Quotes on Self-Love to Boost Your Self-Esteem

Don’t fall into the trap of harsh self-criticism

Company Culture

Oct 27, 2023

What is a Sabbatical? Your Ticket to Restful Growth and Meaning

Sabbaticals can benefits both employees and businesses

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2025 Leaders.com - All rights reserved.

Search Leaders.com