Countering US subsidies: Is a 'Made in Europe' investment plan realistic?

For months, European leaders have sought a united response to the US Inflation Reduction Act, or IRA. That plan, announced by the White House last year, favours American-made climate technology through subsidies and tax credits. But EU chiefs say the policy discriminates against Washington's closest partner, Europe. The panelists in this debate agree that that the IRA poses a major challenge to the European economy, but disagree on the way forward. "We need a major subsidy programme to re-industrialise Europe," says MEP Martin Schirdewan. But MEP Christophe Hansen counters: "Fighting subsidies with subsidies is the wrong way. It will play big EU countries off against small ones, and damage the internal market, which is turning 30 years old," he says.