"We've already touched off a subsidy where we have a kind of arms race..... a green arms race"
Professor David G. Victor
School of Global Policy and Strategy, UC San Diego
"There is a risk of a battle of subsidies, even internally in EU, by the way, because of course, the level of development of countries are different.
It has been a wake-up call for Europe on the industrialisation policy, which was not something that you do at European level. It's not an industrialisation force, as it is not a foreign policy force, because of the nature of the institution is not the federation.
Where is the space of competitiveness for Europe? And in some cases, Chinese won already in the battery industry or the electric vehicle industry. We may have space. But we have to define this. Can we do that together with the US or independently? I think that's a big question mark."
Laurence Tubiana
President and CEO European Climate Foundation
"What the IRA has allowed is the US to take a leadership position in the transition. I think it is something that they're striving for. I don't think it necessarily puts the US in a leadership position until you see the scale get built out."
Jeremy Bezdek
President FREYR Battery US
"This race to the bottom in internal subsidies could be fundamentally distorting and even, I think, threaten the single market. Everybody knows who will win that subsidy war. Germany will win it because their fiscal position is so much stronger and they have a bigger domestic market."
Martin Wolf
Financial Times
Our view
The Inflation Reduction Act will encourage European infrastructure and semi conductor businesses to invest in America. We are already seeing this first hand as the tax credit being offered makes it a no brainer to build the manufacturing capabilities in the US instead of Europe.
This is a 9-part Series. The next part will be on 'Trade tensions and international relations'.
For the full video from Financial Times REPORT
Here's our other post of the Inflation Reduction Act.