Many politicians in Europe fear that US President Biden will encourage local companies to leave the country through his billion-dollar Inflation Reduction Act program. However, experts recommend: stay cool!
If you want to send a shiver down the spines of German economic politicians these days, all you have to do is pronounce three short letters in the finest elementary English: I – R – A. Behind the abbreviation lies the so-called “Inflation Reduction Act”, which is very misleading titled, billion-dollar subsidy program with which the US government wants to promote the climate-friendly restructuring of domestic industry and at the same time attract promising companies from all over the world to the United States. Climate protection activists see a kind of good spirit in the law, which President Joe Biden pushed through Congress in the summer of 2022, to the astonishment of many observers. For local business representatives, who fear that entire industries will move away from Germany, it is a nightmare.