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France, Germany Warn of Firm EU Response to US Inflation Law

Written: 2022-11-23 10:04:27Updated: 2022-11-23 10:46:09

France, Germany Warn of Firm EU Response to US Inflation Law

Photo : YONHAP News

France and Germany will reportedly devise measures to protect the European auto industry if there is no progress in negotiations on the U.S. Inflation Reduction Act(IRA) over the exclusion of electric vehicles(EV) assembled outside North America from tax subsidies.

According to Reuters and other media, French economy minister Bruno Le Maire and his German counterpart Robert Habeck issued the position in a joint press conference after talks in Paris.

The French minister reportedly said that Europe must prioritize the defense of its interests, adding that the European Union(EU) could create a "Buy European Act" in response.

Le Maire criticized the protectionism of U.S. industry through the tax credit stipulation in the IRA as reminiscent of China's industrial model.

The German minister also said that Europe should seek measures to strengthen its industry if a EU task force returns empty-handed from their upcoming talks on the matter.

The EU and the U.S. are set to hold a meeting of the bilateral Trade and Technology Council on December 5 in Washington to discuss conflicts over the IRA, concerns shared by South Korea with regard to the law’s effect on its domestic automakers.

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