Saturday, March 25, 2023

French and German ministers to discuss green subsidies with US

Its purpose is to discuss the impact of the Inflation Reduction Act (IRA) on European industry, which provides for an investment of $370,000 million in favor of the fight against global warming, especially for companies that produce electricity in the United States. Makes batteries for cars. and solar panels.

The United States wants to reduce reliance on Chinese imports, but the European Union (EU) is concerned that US subsidies will encourage European companies to exit the bloc.

Brussels has been pressing the United States to grant exemptions for European companies, but a joint working group has yielded little to address EU concerns.

“We are here in Washington, with my friend Robert Habacek, to defend the interests of European industry,” French Economy and Finance Minister Bruno Le Maire told a press conference with his German counterpart.

“The sooner we can build a strong green industry on both sides of the Atlantic, the better it is for the climate. But it does mean we establish fair competition rules between the United States and Europe,” They said.

For now, talks led by the European Commission continue, and Habeck believes he and Le Maire can help find new solutions.

“It’s a sign that the two largest economies in Europe, Germany and France, are united in this,” Habbeck told reporters in Washington.

The visit followed French President Emmanuel Macron’s visit to Washington in December, during which Biden said the IRA law was not intended to harm America’s allies.

European ministers are expected to stress the need to define fair competition in terms of reciprocity, transparency and cooperation.

Le Maire said that “full transparency on the level of subsidies and tax credits” granted by the IRA is necessary, and that “the maximum number of European components” should be included in the framework of the law so that they can benefit from subsidies applied to American products.

He also raised the possibility of a ministerial-level hotline when strategic investments in the United States and Europe are at stake.

Le Maire and Habeck will meet with White House Senior Economic Policy Adviser Brian Dees and Deputy National Security Adviser Mike Pyle. He will then speak with Commerce Secretary Gina Raimondo and Treasury Secretary Janet Yellen before meeting with Democratic Sen. Joe Manchin, who played a key role in passing the IRA.

Nation World News Desk
Nation World News Desk
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