New U.S. Industrial policy, subsidies competition and economic security

The resurgence of US industrial policy in the form of the Inflation Reduction Act (IRA) and the CHIPS and Science Act marks a turning point in recent US economic policy and bears much promise but also risks. US and EU economies alike are searching for innovative ways to incentivise the green transition and maintain a healthy industrial base. Although European stakeholders are concerned about increased competition and deindustrialization because of US tax incentives, the utilization of subsidies for government intervention into markets is not a new concept in Europe. The EU Commission has softened its state aid standards and establishing its own multi-year subsidies program – the Green Deal Industrial Plan, which aims to facilitate the transition to a more sustainable European economy. The EU also relies upon the Recovery and Resilience Facility's dedicated climate subsidies to offset the IRA's effects on the EU economy.

This workshop will bring together expertise from public and private sectors to explore the economic ramifications of industrial subsidies in the transatlantic economy. What are the market effects so far and what are potential solutions for collaboration in research and development, and in production of advanced technologies such as electric vehicles, batteries, and semiconductors? How can policies be best coordinated to reduce vulnerability regarding China and other “countries of concern.“ To what extent is cooperation on other economic instruments necessary for enhancing overall economic security? Ultimately, our economies are in this boat together.