US protectionism could trigger "war of subsidies" with Europe

Will Europe Respond to US Protectionism With a "War of Subsidies"? | Europe In :60 | GZERO Media

Carl Bildt reporting from the 2023 World Economic Forum in Davos, Switzerland.

What's happening in Davos from the European point of view?

I think there are two issues that are discussed quite broadly.

The one is what's going to be the European response, their response, to what's happening in the US with these massive subsidies and slight protectionist tendencies of evolving industrial policy? Is there going to be a European response of the same sort? There's a danger there, in my opinion, of a war of subsidies across the Atlantic that is going to be to the detriment of both the US and the European economies over time. But that's the big issue.

The second issue is, of course, whether it will be possible to fundamentally step-up military support for Ukraine. The issue of delivering of tanks is very much in the forefront of the public debate, be that in Germany or elsewhere. But it's also obvious that they need more effective air defense systems, and they need better financial support in order to sustain the functionability of the Ukrainian state during the very difficult year that lies ahead.

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