BERLIN, Feb 8 — A subsidy race with the United States would be the wrong way for the European Union to go in response to the US Inflation Reduction Act, German Chancellor Olaf Scholz said today.

"We want to further deepen economic relations with the US,” he told the Bundestag lower house of parliament according to a manuscript of his speech, addressing lawmakers ahead of a meeting with fellow EU leaders that starts tomorrow.

"Our ongoing talks on the Inflation Reduction Act are a good starting point for this - at least if the US renounces rules that put European companies at a disadvantage compared to companies from Canada and Mexico, for example,” he said.

"A subsidy race with the USA would certainly be the wrong way to go,” he added. — Reuters