Subsidy race: Europe is planning a similar program to the USA - risk for Germany

Subsidy race: Europe is planning a similar program to the USA - risk for Germany

The US economy is experiencing a real boom thanks to the Inflation Reduction Act. In view of this, the EU is now planning to launch a similar subsidy program, according to an exclusive special report for the EU. This report is available to WELT and illustrates Europe's ambitions to respond to Biden's measures.

However, this race for subsidies poses considerable risks for Germany. The country's economic development could be impaired by the creation of imbalances and competitive disadvantages. The question arises as to how the German economy will react to these new challenges and whether it will be able to assert itself successfully.

The introduction of a similar subsidy program in Europe could lead to a shift in the balance of economic power and change trade relations within the EU. It remains to be seen how the Member States will respond and whether they will be able to develop a common strategy that meets the challenges at both national and European levels.

Given the increasing importance of subsidy programs in the international economy, the debate about the EU's strategy with regard to government support measures is likely to gain further momentum. It will be interesting to see how Europe will react to Biden's super subsidy program and what long-term impact this will have on the EU economy.