Britain talking to EU and US over Inflation Reduction Act concerns

British Prime Minister Rishi Sunak said on Friday he was talking to the United States and European Union about the U.S. Inflation Reduction Act amid concern it could make European markets uncompetitive. There are concerns in Europe that the United States' $369 billion of subsidies for electric vehicles and other clean technologies could put companies based on the continent at a disadvantage.

Britain's finance minister Jeremy Hunt has called the act a "very real competitive threat." Asked if the U.S. measures could drive investment away from Britain and into the United States, Sunak said "my general view is that it's better for all of us to maintain free and open markets."

"We just need to make sure that everyone remembers that that is our best long term route for all of our prosperity and security," Sunak told reporters en route to a summit with French President Emmanuel Macron "We're engaged in conversation with the EU and U.S. about the implementation of some of these things."