The fears of European officials and politicians who see the superpower attracting European industry to its land with the lure of subsidies from its $369 billion tend to be confirmed. Biden package, also known by the initials IRA. Iconic German car manufacturer, historic Volkswagen“freezes” its plan to establish an EV battery plant in Eastern Europe and prioritizes the corresponding plant in americabecause it is counting on the €10 billion in subsidies it estimates it could get from the controversial package to switch to green economy. Speaking to the Financial Times, VW sources said the German automaker is waiting for the EU’s reaction before proceeding with its plans. in Washington’s aggressive policy.

The reason, of course, is the IRA bill, which will allocate $369 billion in subsidies, loans and tax credits for green technologies, but only for those made in the US. The bill has sent European officials into a panic as the high-tech industries they have developed for years are now moving across the Atlantic in search of additional support as competition from China intensifies. Pressure on the EU and its member states is thus mounting in anticipation of the zero carbon industry bill that the Commission is set to introduce next week as part of the European response to the Biden package.

Subsidies from the $369 billion Biden package for U.S.-made green tech are enticing for the industry.

Indicative is the position of the American corporation Intel, which agreed with Berlin on the construction of a plant for the production of microprocessors in Magdeburg on subsidies in the amount of 6.8 billion euros from the German state. Now the American company is back with new demands, asking the German government for additional subsidies ranging from 4 to 5 billion euros, citing financial difficulties. The microprocessor unit in question is part of its broader $88 billion investment program that includes production in Europe. Among them are the expansion of an existing facility in Ireland, an R&D center in France and a packaging and assembly plant in Italy. According to the original plan, its total investment program in Europe was to be 33 billion euros, including 17 billion euros in Germany. However, according to industry sources who spoke to Bloomberg, Intel now estimates the value of its investments in Germany alone to 30 billion euros. American industry has even stated that it initially assumed that Germany would subsidize the cost of its investment project on its territory by about 40%, under the corresponding EU program. for its self-sufficiency in microprocessors. However, it now remains open to offers of assistance from other government bodies. It should be noted that the investment in question has been submitted to the Commission for review and approval is pending.

Battery industry Northvolt, which has already said it will likely choose the US over Germany to install its next major division, is taking a similar stance to Volkswagen. Of course, he leaves open the choice of a European country if Brussels gives it more generous support. Northvolt is counting on subsidies of at least 8 billion euros if it locates its unit in the US. Meanwhile, European industry executives told the Financial Times that the proposals the Commission will present next week are again not enough to deal with the Biden package’s massive subsidies. On the sidelines of a battery industry meeting attended by competition commissioner Margrethe Vestager, industry representatives described the commission’s expected package of decisions as “pretty bad” and noted that “the absence of specific measures is obvious.” Other industry leaders said they have already been approached by several US states about the opportunities offered by the IRA package. They even stressed that, having studied the possibilities, they found that “they are much more interesting than the conditions offered by Europe.” In short, the omens are extremely bad at the moment, as everything shows that the de-industrialization of Europe has begun, as the Commission makes constantly restrained proposals against the extremely aggressive policies of Washington, while there is not the slightest desire for a new joint loan and state aid plan that will preserve the European industry on the Old Continent.