French Finance Minister Bruno Le Maire stepped up demands for the European Union to take swift and firm action to respond to U.S. President Joe Biden’s climate law, according to Bloomberg.
France is concerned that several provisions in the Inflation Reduction Act discourage investment in the EU and discriminate against European companies, particularly tax credits for American-made electric vehicles.
Le Maire said “firm and proportionate” options could include stricter environmental rules, measures to ensure preference for European production, or an acceleration of reciprocity rules. Asked if Europe could lodge a complaint with the World Trade Organization, he said the continent should use all options available.
“We must react fast. I’m calling for a united, strong and coordinated response from the EU to our American allies,” Le Maire said in an interview with Les Echos. “Only a hard line will allow us to get results.”
The U.S. and the European Commission already created a task force last month to try to resolve their disagreements, Thierry Breton, the EU’s internal markets commissioner, said on BFM Business radio. The EU has presented a letter to that forum with the specific points that it believed violate WTO rules.
“Either they will be resolved there, and we hope they will, that’s why we have the task force, to discuss this, or we will have go to the WTO and envisage retaliatory measures,” Breton said.
Speaking later on television BFM TV, Le Maire said he is struggling in negotiations for investment from a foreign company in the electric vehicle sector as the US is ready to offer four times the amount of subsidies. In total, France estimates around 10 billion euros ($10 billion) of investment and 10,000 jobs are at stake.
“There is a risk of a major shock for French and European industry,” Le Maire said.