'Discriminatory' measures in U.S. Inflation Reduction Act still need addressing, top EU minister says

The European Union inactive believes President Joe Biden's Inflation Reduction Act discriminates against companies successful the bloc, its apical commercialized curate said Thursday.

However, Valdis Dombrovskis told CNBC that the EU was engaged successful ongoing negotiations with U.S. officials that had allayed lone immoderate of its concerns truthful far. He noted helium met with U.S. Trade Representative Katherine Tai 2 days ago, a gathering astatine which the brace pledged to summation engagement connected cardinal issues including electrical conveyance subsidies.

"Our concerns are the discriminatory measures successful [the] U.S. Inflation Reduction Act, which is discriminating against EU companies," helium said successful an interrogation astatine the World Economic Forum successful Davos, Switzerland.

"We deliberation we should beryllium addressing the clime alteration and greenish modulation jointly, gathering transatlantic worth chains, not breaking them apart."

The IRA was approved by lawmakers successful August and includes a grounds $369 cardinal successful spending connected clime and vigor policies. It was met with swift criticism from EU subordinate states, who consciousness that a big of its provisions — including greenish subsidies specified arsenic tax credits for electrical cars made successful North America — endanger European industry.

Asked by CNBC's Geoff Cutmore if determination was immoderate hazard of the quality escalating into a commercialized war, Dombrovskis said: "Currently we are focusing connected negotiated solutions, we are reaching retired to U.S. authorities astatine antithetic levels."

"We person a dedicated EU-U.S. task unit which continues its work. We person made immoderate progress, immoderate of our concerns are being addressed, but determination are inactive concerns which request to beryllium addressed."

On what the EU's effect would beryllium if it was not satisfied with the result of negotiations, Dombrovskis said present was "not astir sabre ratting."

He added the bloc was moving connected its broader economical argumentation effect to competitiveness issues fixed the challenges of precocious vigor prices and the warfare successful Ukraine, arsenic good arsenic the IRA.

That is acceptable to see a reappraisal of existing EU subsidies and funds and whether they are being utilized astir effectively.

Dombrovskis besides said they were looking to set the EU's strict authorities assistance rules to let subordinate states to supply much enactment for companies aiding the greenish transition, arsenic antecedently called for by European Commission President Ursula von der Leyen.

"But determination of people we request to beryllium cautiously framing it to support a level playing tract wrong the EU azygous market," Dombrovskis said.

Ireland's Finance Minister Michael McGrath told CNBC Wednesday the EU wanted to debar a "subsidies race" with the U.S., and that immoderate changes to authorities assistance rules indispensable not payment countries with the "means and resources" to supply greater enactment to companies than others.

Meanwhile, Spanish Prime Minister Pedro Sanchez said Monday the EU could larn lessons from the IRA.

"We request to betterment immoderate interior aspects of our concern policies specified arsenic authorities aid, reducing bureaucracy and trying to nonstop a connection for the manufacture worldwide that's it's Europe, and of people Spain, that is simply a bully spot to locate," helium added.

—CNBC's Silvia Amaro contributed to this article.