DAVOS - The European Union will prepare a law to make life easier for its green industry and back it up with state aid and a European Sovereignty Fund to keep firms from moving to the United States, the head of the European Commission said on Tuesday.
The EU is concerned that European companies will move to the US, which has a $369 billion scheme to subsidise green production. The EU will therefore provide money for its industry as well, Dr von der Leyen said. “For example, with simple tax-break models. And with targeted aid for production facilities in strategic clean tech value chains, to counter relocation risks from foreign subsidies,” she said.