The EU plans to ease state aid rules, allowing member states to “match subsidies of third countries” to nurture their clean-tech industries and prevent the US Inflation Reduction Act (IRA) leading to “unfair competition”, Ursula von der Leyen said.

The European Commission President in a speech to the European Parliament on Wednesday stressed that while she acknowledges that the IRA entails a significant investment plan for the energy transition that sets standards for green tech sectors, supporting the transition must be done “in a spirit of cooperation and in a way that ensures a level playing field”.