News analysis

EU leaders agree to act against US green subsidies, raising spectre of a major trade dispute

The EU is lifting its own restrictions on state aid to key green technology and industrial sectors, in response subsidies by the US. PHOTO: REUTERS
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LONDON - European Union leaders have agreed to retaliate against what they regard as unjustified and trade-distorting subsidies offered by the United States to its domestic green energy industries.

Faced with what it claimed to be a “new geopolitical reality”, the EU vowed to “act decisively to ensure its long-term competitiveness, prosperity and role on the global stage” by lifting its own restrictions on state aid to key green technology and industrial sectors.

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