Germany's Habeck: Optimistic EU and US can reduce trade tension

Anil Panchal FXStreet

German Economy Minister Robert Habeck expressed optimism on Monday about resolving a European Union trade dispute with Washington, saying he saw room for compromise on certain elements of the US Inflation Reduction Act and its green subsidies, reported Reuters.

Reuters also quotes Germany’s Habeck as saying, “There is still a fair chance to reach agreements that will allow European industry to participate, and not be excluded from, the Inflation Reduction Act."

“The US legislative process was completed, but work was now underway on regulations implementing the law,” also mentioned Germany’s Habeck while adding, “That process was far advanced, or more or less completed, for the automotive and battery sectors, but was still ongoing for the areas of hydrogen, critical minerals and raw materials.”

The news also quotes President Joe Biden's top economic adviser Brian Deese as saying, “Europe and other U.S. allies could actually benefit from the U.S. investments planned since they would accelerate reductions in the cost of next-generation technologies that are critical for the world.”

"Europe and other allied countries have nothing to fear from the Inflation Reduction Act and quite a bit to gain," US President Biden’s Adviser Deese said.

Germany’s Habeck is slated to meet with US Treasury Secretary Janet Yellen on Tuesday along with French Finance Minister Bruno Le Maire per Reuters.

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Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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