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EU Eyes Easing Curbs on State Tech Aid in Reply to US

Plans being pushed by Thierry Breton, a French EU commissioner
Some member states are urging caution on relaxing EU rules

An employee inspects a wafer at a manufacturing facility in Germany. — An employee inspects a wafer at a manufacturing facility in Germany.
Photographer: Krisztian Bocsi/Bloomberg

By

Jillian Deutsch,

Jorge Valero and

Alberto Nardelli

January 13, 2023, 11:15 AM UTCUpdated onJanuary 13, 2023, 5:10 PM UTC

The European Union is considering easing restrictions on state aid for clean tech products, as the bloc seeks to support companies and counter a US climate law.

A plan pushed by Internal Market Commissioner Thierry Breton would open the door to aid for products like solar panels and batteries, similar to how the EU allowed subsidies for the production of semiconductors last year, according to people familiar with the matter. This idea, called a “Clean Tech Act,” could also include changes to permitting rules.