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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.

  • 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