RE: Why is this still under 50p?17 Apr 2023 08:35
The Chancellor urged world leaders not to put up trade barriers after the US President passed a $369bn package of subsidies to support climate and energy businesses.
Mr Biden’s Inflation Reduction Act has drawn an estimated $200bn in investment since it was passed last year, according to estimates from the Financial Times, and both the EU and Britain have been forced to draw up responses of their own. It has sparked fears of a new era of protectionism, where economies are closely managed through tariffs and subsidies.
Mr Hunt said the British Government would provide “some” support for businesses to stop investment fleeing overseas but said it would be measured.
The Chancellor told Sky News: “First of all it's wasteful to spend money subsidising factories that would have been built anyway.
“Secondly, when you take subsidies away, you can end up with a business that's not viable.”
“If we were to turn our backs on free trade, that will be a disaster for the world economy. We will enter into a dark ages period. We do not want to move to protectionism.”
So far the EU have, it must be said just like us, has only been making noises and are at lose in how to respond to Bidens new 'green support.'
The UK will always be far more nimbal to any changes than the lumbering mostly indecisive EU.
Oh, and the EU has always been a protectionist organisation, probably another reason they don't quite know how to respond.