When visiting Macron
Biden defends US subsidies against criticism from Europe
12/01/2022 9:34 p.m
The EU is concerned about US efforts to become less dependent on global trade. During the state visit of French President Macron in Washington, US President Biden justifies the approach – but at the same time promises changes.
In an economic dispute between the USA and France, US President Joe Biden has defended his course. “The United States does not apologize,” Biden said at a White House press conference with President Emmanuel Macron. He himself does not apologize for the anti-inflation law he initiated, against which there is resistance from France. There are minor things that could be discussed and resolved.
Biden defended the line that the US did not want to rely on supply chains in other parts of the world. Europe has the same goal and can do the same. The trigger for the dispute is a package of legislation for energy security and combating climate change that is worth a total of 430 billion dollars. EU countries fear it will disadvantage European companies and lead to exodus to the US.
The stumbling block here are localization regulations. For example, US tax breaks for renewable energy technologies such as electric cars are tied to components being manufactured in North America. The federal government recently spoke out in favor of striving for an amicable settlement in the dispute. At the start of his visit to the USA, Macron warned that the differences would be so great that numerous companies would no longer invest in Europe.
Biden promises changes
Biden said there are details that could be tweaked. “We can make adjustments that can fundamentally make it easier for European countries to participate and/or go it alone,” Biden said. Macron and he would have commissioned their teams to solve problems.
There is no intention to exclude other countries, stressed Biden. “The intent was to make sure we didn’t end up in a situation where a pandemic breaks out in Asia and China decides to stop selling us computer chips.” Biden also praised the partnership between the US and France. “We occasionally have minor differences of opinion, but never of a fundamental nature.”
Macron expressed hope for a mutually acceptable solution. “Basically, we share the same vision and the same will,” said Macron at the press conference. “We want to be successful together, not against each other.” It is about a common strategy to create more industrial jobs – both in the US and in Europe – and to ensure the strength and resilience of supply chains. “In view of the global challenges, the topicality is forcing us to act in a more coordinated way.”