Europe can learn from Biden’s Inflation Reduction Act, Spain's PM says

DAVOS, Switzerland — Spanish Prime Minister Pedro Sanchez told CNBC Monday that the European Union has thing to larn from Washington and its caller policies to combat inflation, saying helium hopes that a commercialized warfare betwixt the 2 sides tin beryllium avoided.

"We request to learn," Sanchez told CNBC erstwhile asked the Inflation Reduction Act which the U.S. hopes volition marque it the go-to spot for greenish investment.

"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.

The sweeping U.S. legislation, which was approved by U.S. lawmakers successful August and includes a grounds $369 cardinal successful spending connected clime and vigor policies, has received a mixed effect from the 27 EU nations. The European Commission, the enforcement limb of the EU, has antecedently said determination are "serious concerns" about the plan of the fiscal incentives successful the package.

The EU has listed points successful the U.S. Inflation Reduction Act that it believes could beryllium successful breach of planetary commercialized rules. One of the biggest sticking points for the Europeans is the taxation credits granted for electrical cars made successful North America. This could bring challenges to European carmakers that are focusing connected EVs, specified as Volkswagen.

There has been suggestions that Washington could find ways for European firms to entree these greenish subsidies, but this has further enraged immoderate European politicians. Belgium PM Alexander De Croo, for example, precocious accused the U.S. of an "aggressive" run to lure companies to its shores with these measures.

"I anticipation not," Sanchez said erstwhile asked astir the anticipation of a commercialized warfare breaking retired betwixt the U.S. and the EU.

"I deliberation that we request to person that dialog to scope an agreement," helium said.

"I deliberation that this [Russia-Ukraine] warfare besides shows america the value of unity connected the defence broadside but besides connected the economical broadside wrong the Western countries," helium added.