Top German, French Ministers In United Front At Talks In Washington.
German Vice Chancellor and Economy Minister Robert Habeck continued talks in Washington on Tuesday focused on the controversial US Inflation Reduction Act (IRA) with its huge investments in green technologies.
French Economy Minister Bruno Le Maire, who joined him to present a united European front, said during a joint appearance with Habeck that they were in the US capital together to defend the interests of European industry and to ensure fair competition with the United States.
The European Union has scrambled to respond to the IRA, a $369 billion package passed by the US, part of which incentivizes the domestic manufacturing of clean energy. The bloc fears the legislation could cause EU-based companies to move overseas.
The IRA ensures tax credits for US consumers who purchase electric vehicles with batteries manufactured domestically and in certain countries with free trade agreements with the US. The EU and US are major trading partners, but have no such deal.
Habeck said that trade challenges must be faced head-on. “That means building, keeping and protecting a strong European industry.”
In the US, he said, the IRA’s implementation was still being worked out, meaning that the EU still has some time to “come up with solutions.”
He added that the European Commission was conducting the relevant trade negotiations, but said that he, along with Le Maire, wanted to support them.
Full transparency was needed from the US regarding the extent of its subsidies, said Le Maire.
He also said that a certain number of European manufacturers should be allowed to profit from US tax breaks. “I’m thinking of electric cars, I’m thinking of electric batteries, I’m thinking of critical raw materials,” said Le Maire.
A joint meeting to lay out the EU’s industry aims is planned with US Treasury Secretary Janet Yellen, Trade Representative Katherine Tai and Commerce Secretary Gina Raimondo.
For Habeck, a meeting with US Secretary of State Antony Blinken is also planned.
General trade policy and the geopolitical situation are on Habeck’s agenda before he returns to Berlin on Wednesday.
Source: Germany Today.
