U.S. and European leaders met to discuss government support for energy transition and avoid harmful competition. Among other things, they discussed an agreement on strategic metals and an in-depth dialogue.
The “Inflation Reduction Act”: a massive aid plan for the energy transition
Joe Biden has launched a huge aid plan for the energy transition, the “Inflation Reduction Act”, which unabashedly supports “Made in America” and provides tax incentives for the purchase of electric vehicles. European manufacturers fear the effects of this plan on their own industries.
Targeted agreement on strategic metals for the energy transition
To temper the fears of European manufacturers, Joe Biden and Ursula von der Leyen promised to “immediately begin negotiations for a targeted agreement on strategic metals” for the energy transition. This is a critical issue for both parties.
The two leaders also promised to work together to avoid zero-sum competition in public support for energy transition. They want these policies to support the development of clean energies and employment, without becoming windfalls for private interests.
Reaffirming Transatlantic Unity
Joe Biden promised Ursula von der Leyen a “new era” in the transatlantic relationship, after the tensions of the previous administration. The two leaders also stressed their unity in the face of Russia’s invasion of Ukraine and their unwavering support for the country.
The question of sanctions against Russia and the position towards China
The leaders discussed sanctions against Russia and how to prevent them from being circumvented. China, accused of considering military aid to Russia, was strangely absent from the official statements, but was mentioned in code in the joint communiqué.
The meeting between Joe Biden and Ursula von der Leyen provided an opportunity to discuss crucial issues for the energy transition and to reaffirm transatlantic unity in the face of international challenges.
