Anger over US subsidies spreads to Belgium

Belgian Prime Minister Alexander De Croo has become the latest person to cry foul over the US government's Inflation Reduction Act, a $430 billion support program for US industries that was passed last August and which Europe fears will lure companies away from its shores.

Subsidies provided under the IRA are to encourage US companies to make the transition to more environmentally-friendly processes and greener energy, but Europe claims they would make rival businesses less competitive.

Speaking to members of his centrist Renew group, De Croo accused the United States of aggressive tactics and ignoring their impact on supposed friendly nations.

"The US, our partner … they call our industry. And they tell them, 'why are you investing in Europe? You should come over to the US'.Calling German firms and Belgian firms in a very aggressive way — don't invest in Europe, we have something better," he said.

De Croo claimed that chemical and steel companies in Belgium had already been approached to take their business across the Atlantic. The Financial Times quoted an unnamed European Union official as saying that similar reports had come from other leaders, which were judged to be part of a concerted effort. "I think they were very well aware of the impact that it could have," De Croo added.

Calling for coordination

On his state visit to Washington in December, French President Emmanuel Macron warned that "the choices of the past few months, in particular the IRA, are choices that will fragment the West … we need to coordinate and re-synchronize our policy agendas".

Italian Economy Minister Giancarlo Giorgetti has called for a concerted EU response to the policy, which he claimed could pose a threat to his country's economy.

"Some Italian companies are considering moving production to the US following the IRA scheme, it would be a disaster," he said.

Business leaders as well as politicians have expressed concern about Washington's tactics.

"The IRA forces European companies to relocate manufacturing into the US to participate in US-based projects that weaken European industrial capacities," Yvonne Bendinger-Rothschild, executive director of the European American Chamber of Commerce, told CNN Business. She also said that although it may have proved popular with the domestic audience, "such a policy isn't how you treat friends".

Looking to the EU, De Croo said "our unity is our strength". He also accused Washington of trying to bully the Netherlands into banning the export of chipmaking equipment to China.