EU won't borrow more to counter U.S. green subsides, eyes redirecting existing funds -draft

BRUSSELS, Jan 30 (Reuters) - The European Commission will not propose any new joint EU borrowing on Wednesday when it presents ideas on how to support Europe's green industry facing Chinese and U.S. competition, a draft document showed on Monday.

Instead, the draft seen by Reuters offers to re-purpose some of the money the EU has already agreed to raise jointly for its post-pandemic recovery fund. It will also loosen state aid rules to allow governments to support their firms more.

European funding for the green industry - makers of wind turbines, solar panels, batteries, electric vehicles or hydrogen - has become an issue after the United States offered $369 billion of subsidies largely for manufacturers based in North America, threatening to lure away companies away from Europe. (Reporting by Jan Strupczewski; editing by Philip Blenkinsop)