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HomeEconomyFrench, German ministers tell U.S. not to poach EU investment - sources

French, German ministers tell U.S. not to poach EU investment – sources

PARIS (Reuters) – French and German economy ministers will tell top U.S. officials not to try to aggressively poach green investment from Europe when they visit Washington next week in a bid to draw attention to U.S. green technology, two French officials said. Subsidy concerns.

France’s Bruno Le Maire and Germany’s Robert Habeck will be in the spotlight as media in Washington focus on tax credits under the U.S. Inflation Reduction Act, which imposes restrictions on products ranging from electric cars to solar panels. Provide subsidies as long as they meet

French Economy Ministry official said, in addition to Treasury Secretary Janet Yellen, Trade Representative Catherine Tai and Commerce Secretary Gina Raimondo, the two will meet White House officials on Tuesday .

EU governments are concerned that tax credits not only put European producers at an unfair disadvantage, but could be actively used to attract investment from Europe to the US.

“One Europe If the message from ministers will be to not engage with European companies about moving factories to the US, then there will be plenty of room for everyone to invest in Europe and the US,” one said an official. The second official said the aim was to avoid “aggressive marketing” to EU companies to invest in the United States.

After the European Commission has already won a partial victory for electric vehicles produced outside North America, the companies will gain partial victory if consumers lease electric vehicles to qualify for tax credits. The first official said there were local production requirements for a key material used in electric vehicle batteries.

The Lower Inflation Act, two officials said.

This is key because it could determine how much state support European companies can receive under the European Commission’s proposal to allow third-country subsidies to be matched across Europe.



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