US aid to businesses requires strong European response

US aid to businesses requires strong European response
US aid to businesses requires strong European response

US aid to businesses requires strong European response

T+ T normal size

French Economy Minister Bruno Le Maire said US aid to businesses requires a “coordinated, unified and robust response” from Europeans.

And Le Maire warned in an interview published Sunday night that “the race for subsidies…is against all the rules of international trade”.

Le Maire, in an interview with four European newspapers, namely France’s Le Zico, Germany’s Handelsblatt, Spain’s El Mundo and Italy’s Corriere della Sera, said that “some large foreign companies wanted their headquarters in Europe were now hesitating between European and American locations.

“In some cases, the level of subsidies provided by US President Joe Biden’s administration was between four and 10 times the maximum allowed by the European Commission,” he added.

He pointed out that “our industrial sector is already suffering from a lack of competitiveness related to the difference in energy prices between the United States and Europe”. He stressed that “the massive help from the US anti-inflation law and also heavily subsidized Chinese competitors could further widen the gap”.

The US Act on Inflation Reduction, so named to keep up with current developments but in reality a program of environmental and social reforms, is an investment plan worth hundreds of billions of dollars.

Le Maire called for “a coordinated, united and strong European Union response to our American allies. Only determination will allow us to achieve results.”

He emphasized that he was “waiting for strict and proportionate proposals from the European Commission”.

He believed that “when we emerge from the current energy crisis, we will likely have a higher rate of inflation than in recent decades (…) because the relocation of our factories (…) and the decarbonization of the economy will increase the cost of some products.”

To press
E-mail





#aid #businesses #requires #strong #European #response

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top