The European Commission is planning to introduce new legislation later this month, aimed at increasing local production within its automotive industry and protecting it from intense Chinese competition.
Is there any reason to pay subsidies for products produced outside the EU at all?
It depends on the objective: if you just want to force a switch from ICE cars to EV cars you simply subsidies EV cars, whereever they are built, it make sense. But it has its quirks
I’m not an economist nor do I have any expertise in trade relations, but I have to ask:
Is there any reason to pay subsidies for products produced outside the EU at all?
If there is no supplier of some parts inside the EU left and you want to subsidise a finished car that isn’t missing some parts.
It depends on the objective: if you just want to force a switch from ICE cars to EV cars you simply subsidies EV cars, whereever they are built, it make sense. But it has its quirks