During a speech in Belgium, European Commission President Ursula von der Leyen said that the EU must address the "distortions" created by a US 430 billion dollar plan to stimulate climate-friendly technologies

Citing fears of a trade war, some EU members have criticized the US inflation Reduction Act, and there are concerns that tax breaks may attract EU companies and harm European companies

Von der Leyen said the EU should "amend its own rules."

During her speech, der Leyen added: "the competition is good... But this competition must respect equal opportunities."

Under the US inflation Reduction Act, American consumers will receive incentives to purchase new and used electric cars, to heat their homes with heat pumps and even to cook their food using electric induction

US President Joe Biden called this the "most offensive action" taken by his country to address the climate crisis

But European allies view it as an anti-competitive measure and a threat to European jobs, especially in the energy and automotive sectors

Von der Leyen said the EU should work with the United States "to address some of the most worrying aspects of the law."

She added that the EU should also "amend" its own rules on state aid to stimulate public investment in environmental transformation

The new legislation was raised during French President Emmanuel Macron's trip to Washington to meet with Biden last week

The US president said there may be "adjustments" to make it easier for European companies to benefit from the support package

"I never intended to exclude people who were cooperating with us. That was not the intention."

"We are back to work, Europe is back to work. We will continue to create manufacturing jobs in America, but not at the expense of Europe."