Macron re-sounds the alarm over US law

French President Emmanuel Macron considered that the law “To reduce inflation in America”, which provides for huge support for American companies, poses a threat to the industry in Europe.

“Europe is going through a difficult period because of the war (in Ukraine) and also because of the trade decisions made by our allies in the US. If Europe does not respond, the acceleration of the recovery of the American economy will mean a recession, Macron said at a joint press conference with Spanish Prime Minister Pietro Sanchez in Barcelona on Thursday. Production (in Europe).

Earlier, Macron described the US law as “unfriendly” and “aggressive”, saying that Europe needs to speed up action to support the business sector, which, according to Macron, is 3-4 times smaller in the EU than in the US.

The French President noted that Paris expects Europe to respond to the US Inflation Reduction Act (IRA) by early 2023.

Last week, European Commissioner for the Internal Market Thierry Breton said the EU was working on measures “similar” to massive US subsidies to protect European markets from unfair competition.

And the U.S. Inflation Reduction Act, signed into law by President Joe Biden in August 2022, provides for an increase in tax subsidies for the purchase of electric vehicles that are assembled in North America and use U.S.-made batteries from local materials, and the law allocates $370 billion. for clean energy and climate goals and $64 billion for cost reductions in electricity, medicines and health insurance.

Source: News