The European Union is skeptical that the U.S. will make any meaningful changes to a $370 billion green investment plan that Brussels says unfairly subsidizes U.S. companies, Bloomberg reports.

Although President Joe Biden said last month that he sees scope for adjusting the Inflation Reduction Act (IRA) to make it easier for European countries to participate, the U.S. has so far only offered tax breaks for commercial electric vehicles, which EU officials consider insufficient.

The U.S. has ignored much of the EU's concerns and suggestions on how to make the IRA, which offers tax breaks for goods and parts made in the U.S., less discriminatory against European firms, sources said.

EU leaders will meet in Brussels next month to discuss reactions to the U.S. law, with some suggesting a so-called buy European law to help support domestic companies. The EU has said it could file a complaint against the U.S. with the World Trade Organization, a prospect that could undermine transatlantic unity in the midst of the war in Ukraine.

Biden told his Cabinet last week that he wants his administration to move forward with his signature climate policy as is, but his aides say they are still debating the interpretation of the law, according to people familiar with the discussions.

With little hope of changing the IRA, the EU has focused on how to respond to the law.

European Commission President Ursula von der Leyen last month unveiled an initial plan that would give member states more freedom to invest in their own companies and redirect existing EU money to firms in need. But leaders will have to decide how far the commission's proposal extends and, importantly, whether it will include new finances.

The EU response could also include a European Clean Technology Act, as well as support for European Investment Bank loans and other methods of improving competitiveness. In the summer, the commission will also propose the creation of a Sovereignty Fund.

Negotiations with the U.S. to find peaceful solutions are continuing through a special working group, and officials are eager to avoid trade conflicts and a subsidy race. Nevertheless, sources say expectations are low because "buy American" is the basis of the new law, and neither Congress nor the Biden administration seems willing to move away from it in any meaningful way.