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EU leaders headed for showdown over US’ sustainability subsidies

EU officials worry the American subsidies will prompt companies to relocate or expand their businesses in the US instead of Europe

European leaders meeting here on 9 February are set to clash over how to respond to new environmental subsidies in the US, in a debate that pits some of the bloc’s wealthier members against those that are less able or willing to spend heavily on industrial support.

Washington last year adopted massive clean-tech subsidies that some EU officials worry could hollow out the bloc’s burgeoning green industries. In response, some officials advocate easing the EU’s own strict subsidy rules to allow for more government spending — an idea that has proved controversial.

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