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Macron and Europe’s Rejection of Biden’s Inflation Reduction Act

Macron Biden inflación

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Emmanuel Macron visited the United States and did not let the charms of the warm reception divert him from his objective and took advantage of his visit to show Europe’s dissatisfaction with Biden’s Inflation Reduction Act.

Just a day before the aforementioned dinner, the President of France visited his embassy in Washington D.C., where he made very critical comments about Biden’s Inflation Reduction Act: “The choices that have been made … are choices that will fragment the West,” and stated that some subsidies present in such legislation create “differences between the United States of America and Europe”.

The Inflation Reduction Act is despided in the EU

It turns out that Macron’s concerns are shared by other European Union leaders, who fear that Biden’s bill will put their companies at an unfair disadvantage.

Macron and Europe's rejection of Biden's Inflation Reduction Act, EFE
Presidents Joe Biden (USA) and Emmanuel Macron, Washington, DC, USA, December 1, 2022. (EFE)

As reported by Reuters, “EU countries are worried their companies will suffer because of U.S. tax breaks for components used in renewable energy technologies like electric cars on condition they are made in North America.”

Specifically, they believe that some World Trade Organization (WTO) rules are potentially being violated and that the subsidies could encourage sectors in their own economies to relocate their operations to the United States.

Bruno Le Maire, French Finance Minister, took up the gauntlet and indicated that while his government agrees with the energy transition, it must be done on a level playing field.

Europe’s complaints stem from its own rules. Under state aid rules governing EU, member countries are prohibited from offering generous tax breaks to companies seeking to build factories, as the United States can.

Macron and Europe's rejection of Biden's Inflation Reduction Act, EFE
Presidents Joe Biden (USA) and Emmanuel Macron at the State Dinner in honor of the French leader, Washington, DC, USA, December 1, 2022. (EFE)

The meeting between Joe Biden and Emmanuel Macron

The two leaders met last December 1 and then held a joint press conference. “France is one of our strongest partners and most capable allies and Emmanuel has also become a friend. We address all challenges together and occasionally we have some slight differences but never in a fundamental way thus far,” Biden said in front of the cameras.

While the Democratic president did not openly apologize, he did acknowledge that the legislation had certain “glitches”. However, he also clarified that he “never intended to exclude” his allies.

For his part, Macron emphasized that the two nations needed to “resynchronize” in trade, and was hopeful about relations between the two countries.

Joaquín Núñez es licenciado en comunicación periodística por la Universidad Católica Argentina. Se especializa en el escenario internacional y en la política nacional norteamericana. Confeso hincha de Racing Club de Avellaneda. Contacto: [email protected] // Joaquín Núñez has a degree in journalistic communication from the Universidad Católica Argentina. He specializes in the international scene and national American politics. Confessed fan of Racing Club of Avellaneda. Contact: [email protected]

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