BERLIN (AP) — Senior French and German officials warned Wednesday that recent moves by the Biden administration to tackle climate change and boost the U.S. economy could change the level playing field between the European Union and the United States.
The EU has criticized the legislation, passed by Congress in August, for including clauses it says discriminate against European carmakers.
“We need to work on adequate European responses to this US Inflation Reduction Act, which could endanger the developing countryside between our two continents,” French Economy and Finance Minister Bruno Le Maire said after conversations with their German counterparts.
When asked what such an answer might entail, Le Maire said: “We’re not talking about an eye for an eye.” But he told reporters that France wanted to explore “all options with our European partners.”
“We should take any opportunity we get to talk to the US administration and explain very clearly that we don’t want to be hit by these (latest) decisions by the Biden administration and by the consequences of the Inflation Reduction Act,” he said. he said she.
German Economy Minister Robert Habeck also expressed concern about the effects US measures could have on Europe.
“We see companies and firms moving away from Europe to the US because of the heavy subsidies paid there,” he said. “We can’t (get into) a trade war at a time like this.”
“We are in good talks with our American partners, but this definitely needs a strong response, a strong, strong European response,” Habeck added.
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