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The Economist — World — EU Subsidies — Climate Change — Green Tech — Trade Policy

How the EU should respond to American subsidies

EU leaders should not respond to American subsidies with protectionism and handouts. Instead, they should play to their strengths and use a market-based approach like a carbon price to make the transition to a greener economy cheaper.

1 min read
  • EU's single market turns 30, but the economic model may no longer be working.
  • Europe's leaders are tempted to respond with handouts and protectionism of their own.
  • EU's market-based approach to climate change, which is based on a carbon price, will make the transition cheaper.
  • Europe should develop deeper economic ties with other countries.
  • EU should draw on its strengths: a free internal market, limits on state subsidies and a vigorous trade policy.
How the EU should respond to American subsidies
Instead of imitating them, it should play to its strengths | Leaders
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