France offers "Made in Europe" strategy against US Competition

France is proposing that the European Union soften its rules on state aid and financing for companies in response to the controversial subsidy program adopted by the United States, DPA reported, quoted by BTA.

French President Emmanuel Macron wants to simplify EU rules and procedures, especially for important initiatives of common European interest, as well as for state aid and new financial resources for investment.

US President Joe Biden signed in August the so-called Inflation Reduction Act that redirects billions of dollars to green energy and social justice investments.

According to the European Commission, the law puts European companies at a disadvantage compared to their American competitors. Europe fears that this could lead to the relocation of production and job losses. France has therefore been pushing for a strong pan-European response for some time.

The French government has indicated that it awaits the European Commission's proposals on the matter before the next EU summit, which is scheduled for early February.

Part of the "Made in Europe" strategy, according to Macron, will be a new sovereign fund that will provide the necessary financing for all European countries, the German newspaper "Handelsblatt" reports. The idea envisages using funds from existing European funds, such as the recovery funds after the COVID pandemic, to be redirected to the project.

Paris also offers a fiscal instrument that could pave the way for pan-European lending.

France's goal is to restructure the EU's industrial policy in order to reduce dependence in key sectors, Politico adds.

Four pillars

Reuters notes that European leaders will discuss such an industry policy at a Feb. 9-10 summit in...