Germany’s Scholz Backs Joint EU Funding to Counter US Aid (1)

German Chancellor Olaf Scholz and his Social Democrats will call for the European Union to create new joint financing instruments to help member states compete against increased US subsidies for green technology.

Scholz’s Social Democrats want to see a reform of the EU’s existing state-aid rules and more funds to match the US green-aid push, according to a draft paper on European industrial strategy seen by Bloomberg.

Olaf Scholz on Jan. 11.

Photographer: Tobias Schwarz/AFP/Getty Images

A person with knowledge of his thinking said the chancellor supports the proposals set out by his party and wants EU leaders to endorse additional financing tools so that member states with ...