EU gives guarded welcome to U.S. guidance on EV tax credits

FILE PHOTO: A worker prepares an electric ID Buzz van at the booth of German carmaker Volkswagen Commercial Vehicles at the IAA Transportation fair, which will open its doors to the public on September 20, 2022, in Hanover, Germany, September 19, 2022. REUTERS/Fabian Bimmer/File Photo

BRUSSELS (Reuters) - The European Commission gave a guarded welcome on Thursday to guidance by the United States meaning that EU companies could partially benefit from the U.S. Inflation Reduction Act, but said further improvements were required.

The $430 billion green subsidy law, which grants tax credits for buying U.S.-produced electric vehicles (EVs) and other green products, has triggered fears it could make the United States a world leader in the EV market at the expense of European countries.