French President Emmanuel Macron, who will be on a state visit to Washington next week, intends to obtain from his American counterpart Joe Biden exemptions for European industrialists penalized by American legislation, the French presidency announced on Friday.
The Inflation Reduction Act (IRA), which came into effect last August, aims to reduce costs for North Americans.
It includes not only massive investments in the energy sector and in favor of the climate, but also generous subsidies for electric vehicles, batteries and renewable energy projects.
However, many subsidies will only be paid for products made in the United States, which will favor, for example, American Teslas over German electric BMWs and American steel for wind farm projects.
Stay in global competition
It is inconceivable that "the Congress, moreover with a House of Representatives with a Republican majority, can fundamentally revise the IRA", recognized an adviser to Emmanuel Macron.
But, "we can imagine that the American administration grants exemptions for a certain number of European industries, perhaps on the model of what it already grants for Mexico or for Canada", he said. told reporters.
What is this American "subsidy race" that annoys Le Maire?
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Beyond exemptions, Europeans must move forward in unison to remain in global competition by adopting their own IRA, the "Buy European Act", argued the adviser, adding that this is the message Americans.
“It is in the common interest” of European countries, adds the Elysée.
We cannot risk a greater deindustrialisation of Europe precisely when our objective is to reindustrialise.
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Emmanuel Macron will arrive Tuesday evening in Washington
The French presidency admits that Europe will find it difficult to compete with the United States in terms of resources, citing the 350 to 400 billion dollars included in the recent IRA legislation.
“It is not necessarily obvious on a European scale, however, it will be necessary, in Europe, to find the means to support this competition,” opined the adviser to the Elysée.
Emmanuel Macron will arrive Tuesday evening in Washington and will begin his official visit the following day.
He will be the first French president to have the "honor" of being offered two state visits.
The first was made in April 2018 at the invitation of Republican President Donald Trump, who had started a trade war against China which, a few months later, also affected European countries.
In addition to a private dinner Wednesday at the White House with Joe Biden and his wife, Jill, a lunch is planned for Thursday with the head of diplomacy Antony Blinken and a state dinner.
A press conference is also scheduled for Thursday.
At the end of his visit, Emmanuel Macron will travel to New Orleans in Louisiana.
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