{"id":217454,"date":"2022-12-07T20:12:50","date_gmt":"2022-12-07T14:42:50","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=217454"},"modified":"2022-12-07T20:12:50","modified_gmt":"2022-12-07T14:42:50","slug":"explained-why-is-europe-worried-about-the-u-s-inflation-reduction-act","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/explained-why-is-europe-worried-about-the-u-s-inflation-reduction-act\/","title":{"rendered":"Explained | Why is Europe worried about the U.S Inflation Reduction Act?"},"content":{"rendered":"\n

Source: <\/b>The post is based on the article<\/span> \u201c<\/b>Explained | Why is Europe worried about the U.S Inflation Reduction Act?<\/b>\u201d <\/b>published in<\/span> The Hindu <\/b>on 7th December 2022<\/b><\/p>\n

What is the News?<\/b><\/h5>\n

French President has raised concerns over the US Inflation Reduction Act(IRA) which European countries believe is discriminatory to non-American companies.\u00a0<\/span><\/p>\n

What is the US Inflation<\/b> Reduction Act(IRA)?<\/b><\/h5>\n

The Inflation Reduction Act is a $430 billion package of federal spending, tax breaks, credits, and levies aimed at fighting climate change, reducing healthcare costs and making large corporations pay their fair share in taxes.<\/span><\/p>\n

Key Provisions of the act<\/b><\/h5>\n

Healthcare<\/b>: The act extends expiring Medicare subsidies to 13 million Americans and aims to bring down the cost of prescription drugs, for which Americans pay two to three times more than citizens of other countries.<\/span><\/p>\n

Tax code<\/b>: The act aims to make the U.S tax code fairer by imposing a minimum tax of 15% on America\u2019s wealthiest, most profitable corporations.\u00a0<\/span><\/p>\n

Electric Vehicles: <\/b>The act features tax credits for electric vehicles \u2013 up to $7,500 for new purchases \u2013 that will only apply if the product is assembled in the US and the majority of components are sourced domestically or from a free trade partner.<\/span><\/p>\n

Tax credit<\/b>: The Act offers tax credits to build clean technology manufacturing facilities and grants for refurbishing existing auto manufacturing facilities to make zero-emission vehicles.<\/span><\/p>\n

What are Europe\u2019s concerns about the IRA?<\/b><\/h5>\n

Firstly, <\/b>EU member countries fear that the IRA tax credits and subsidies to EVs and other green product makers in North America and free-trade partner countries put European companies at a disadvantage.<\/span><\/p>\n

Secondly<\/b>, the EU\u2019s own new green plan \u2018Fit for 55\u2019 is targeting to cut CO2 emissions from cars by 55% and vans by 50% by 2030 and all emissions from cars by 2035. For this, it will need to <\/span>significantly increase its uptake of electric vehicles. However, IRA raises fears of automakers moving to the U.S.<\/span><\/p>\n

What is the US Government\u2019s stand on this?<\/b><\/h5>\n

U.S. President has said that there was room for \u201ctweaks\u201d in the IRA to \u201cmake it easier for European countries to participate\u201d and it was \u201cnever intended\u201d to exclude cooperating countries.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article \u201cExplained | Why is Europe worried about the U.S Inflation Reduction Act?\u201d published in The Hindu on 7th December 2022 What is the News? French President has raised concerns over the US Inflation Reduction Act(IRA) which European countries believe is discriminatory to non-American companies.\u00a0 What is the… Continue reading Explained | Why is Europe worried about the U.S Inflation Reduction Act?<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,164,9],"tags":[10498],"class_list":["post-217454","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-international-relations-daily-factly-articles","category-public","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1703748541},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/217454","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=217454"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/217454\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=217454"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=217454"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=217454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}