EU to adapt its state aid schemes to counter U.S. green subsidy package

EU to adapt its state aid schemes to counter U.S. green subsidy package

• The EU will adapt its state aid rules to prevent an exodus of investment triggered by a new U.S. green energy subsidy package, the bloc’s chief said on Sunday, while offering cooperation over raw materials to counter China’s dominance.
• The (U.S.) The inflation Reduction Act (IRA) should make us reflect on how we can improve our state aid frameworks and adapt them to a new global environment.
• The 27-country bloc fears that the $430 billion IRA with its generous tax breaks may lure away EU businesses and disadvantage European companies, from car manufacturers to makers of green technology.
• The topic is one of several on the agenda of the EU-U.S. Trade and Technology Council meeting on Dec. 5.
• EU President Ursula Von der Leyen said the EU must take action to rebalance the playing field where the IRA or other measures created distortions, while cautioning that a trade war was in neither country’s interest.

Herzog becomes first Israel President to visit Bahrain

• Israeli President Isaac Herzog arrived on Sunday in Bahrain, the first visit by an Israeli head of state to the small Gulf kingdom since the two countries normalised relations in 2020.
• Mr. Herzog said he would discuss “ways to strengthen our economic cooperation” along with climate change and security issues.
• In 2020, the UAE, Bahrain and Morocco became the first Arab states in decades to normalise relations with Israel, following negotiations spearheaded by the administration of former U.S. president Donald Trump. 
• The Jewish state had earlier reached peace treaties with neighbouring Egypt and Jordan.