The European Commission is trying to figure out whether the EU needs to loosen state aid rules to allow governments to support companies affected by the U.S. Inflation Reduction Act, Reuters reports.

The $430 billion law, which gives consumers tax breaks for electric vehicles (EVs) and other environmentally friendly products made in the United States, has raised fears that it could disadvantage European Union companies and encourage businesses to move to the United States.

While Germany, France, Italy and others are calling for more subsidies or a similar EU law, others point to the billions of euros already invested in companies in recent years to counter the COVID-19 pandemic and the effects of war in Ukraine.

The EU executive will ask countries whether the more lenient state aid rules, known as the temporary crisis framework adopted in March for companies affected by the war in Ukraine, should be extended to companies affected by the U.S. subsidy law.

The commission confirmed that it has begun consultations to make its temporary state aid rules simpler and more predictable in order to accelerate public investment in green sectors.