The French and Spanish presidents are worried that the EU will lose its most progressive companies and scientific teams in the field of green technologies
French President Emmanuel Macron and Spanish President Pedro Sánchez will come up with a common position on how to respond to the dangerously escalating trade dispute with Washington, which could lead to the deindustrialization of Europe and in the US to “shun” the most progressive companies and scientists developing green technologies .
“We are both aware of the fact that we have to react in a very proactive way” to Washington’s massive investment plan to accelerate the US transition to green energy, Macron said after the two leaders signed a deal in Barcelona.
Europe fears the Inflation Reduction Act (IRA), which would pump billions of dollars into climate-friendly technology, would distort transatlantic trade and give US companies an unfair advantage.
“Europe is facing a critical moment because of the war (in Ukraine) but also because of the trade decisions taken by Europe’s allies like the United States,” the Spanish prime minister said as he stood next to Macron.
“We welcome the fact that the United States is joining the transition to green energy, but I believe we need to reach an agreement where this commitment … does not mean the deindustrialization of Europe,” he said.
The EU is pushing to be excluded from the law to limit the devastating effect on its industries. According to Macron, the US plan is “super aggressive” and could lead to European companies fleeing to America to take advantage of the subsidies. Therefore, the French president threatened that Europe will come up with a counter initiative.