Sunday, January 29, 2023

French employers want a huge European aid plan like Biden’s

Paris, 08 December. French employer Madef wants the European Union (EU) to implement a massive subsidy scheme comparable to the Inflation Reduction Act (IRA) of the Joe Biden administration, so that companies do not lose the competitive race.

“A European IRA is needed,” insisted Geoffroy Roux de Bezieux, president of the French Business Movement (MedF), on Thursday in an interview on the BFMTV channel, in which he stressed the reluctance of Germans to the idea, which in his opinion In , they still follow the logic of opening up world markets and have not realized the strategic turn of other powers, especially the United States.

“America has not disappeared with (Donald) Trump first, we must create a Europe first,” he said, in what he sees as a continuation of economic protectionism between the former US president and Joe Biden.

The “number one” of French employers justified a European answer to the IRA because “it distorts competition.” He gave the example of electric cars, as they would receive public subsidies on the condition that a significant part is manufactured locally in the United States.

These subsidies have the effect of driving investment into the United States (the plan envisages an aid package of around $400,000 million) that in some cases will stop making in the EU.

Another concern of Roux de Bezieux is the electricity price gap between the United States, which has relatively cheap production sources such as shale gas, and the European Union, where those rates have increased due to dependence on Russian gas. they will shoot

This—he argued—means that many European companies are no longer competitive compared to other companies established in the United States or Asia, where they have the advantage of five or six times cheaper electricity.

Even while stressing that the United States cannot be held responsible for what is happening in Ukraine, Medef’s president said that “the reality is that (the US) have taken advantage of the war”.

Roux de Bezieux once again justified the reduction of gas and electricity prices throughout the European Union, as temporarily achieved in Spain and Portugal with the so-called “Iberian exception”, and expressed regret that such countries that continue to slow it down. Change: “The selfish European has changed at any cost” which was implemented to deal with the Covid crisis.

Nation World News Desk
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