The European Commission on Thursday welcomed the temporary maintenance of the conditions for awarding subsidies to electric cars in the United States, after the US Treasury Department said in a publication that it had delayed the publication of the final conditions. The Inflation Reduction Act (IRA) – the official name of President Joe Biden’s climate plan – sees subsidies for the purchase of an electric vehicle starting on January 1 and rising up to $7500.

However, the publication of the final conditions is postponed until March by the Ministry, the current ones are maintained: for the time being, the vehicles and their batteries must simply be “collected in North Americato be eligible for subsidies. This therefore includes those manufactured in Canada and Mexico, a longstanding demand from countries bordering the United States. “The conditions published today confirm once again that European companies can benefit from itof the grants under the IRA, the European Commission assessed in a press release that “welcomes these conditions, the fruit of a constructive engagementon both sides of the Atlantic.

On the American side, this decision was criticized by Democratic Senator Joe Manchin, who made money from his support for the IRA and is now asking for a pause in the implementation of these subsidies.time to issue terms that meet the purpose of the IRA“. “The announced rules correspond to the will of the companies and do not respect the purpose of the law“, assessed the selected in a press release. “They only weaken our ability to become a more energy independent country.»

“Similar and non-discriminatory” treatment

In particular, Joe Manchin wants the terms of attribution not to exacerbate America’s dependence.”towards China and Russia regarding raw materials”, as these two countries are among the most important producers of the necessary elements for the electrification of vehicles. The current rules may actually benefit vehicles that do not meet the original goals, which were intended to be “made in USAto favor the American car industry, he believes.

But such a possibility has sparked an outcry both in North America – Canada and Mexico argue that these rules run counter to the free trade agreement between the three countries – and in Europe, which fears a weakening of its industry at a time when it is already suffering from rising energy costs due to the war in Ukraine. The topic was also discussed during French President Emmanuel Macron’s state visit in early December, and the French delegation was optimistic about a possible extension of subsidies for vehicles manufactured in Europe.

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In its press release, the Commission also reminds that the IRA remains “raises concerns as it contains discriminatory measures and effectively excludes European companies» of the planned measures. She says she wants treatmentsimilar and non-discriminatoryby the European producers to that given to their American competitors.