The biggest sore point between the two is American climate subsidies, which, according to Macron, would make Americans “super aggressive” towards European business. The EU has been trying for months to do something about the US government’s Inflation Reduction Act (IRA), which takes effect on 1 January.
For example, it gives Americans a subsidy to buy an electric car with an American-made battery. There are fears that this puts European industry at a disadvantage and could even attract businesses from across the Atlantic.
Adjustments
Biden has now said that changes to the law will be made. You have acknowledged that the law has flaws, that job creation in the United States should not come at the expense of Europe. But that’s all,” says Europe correspondent Stefan de Vries.
Macron said the IRA law also puts a brake on the fight against climate change, because it only makes sense if countries work together,” says De Vries of the state visit. “But ultimately it’s still Buy America First and Macron didn’t really get rid of it.”
According to De Vries, Macron’s commitment during the state visit to Biden was also a message to European member states. “Europe should also do a Buy Europe Act, this was a performance to show that Europe should do the same as America.”
Macron like von der Leyen
America and France are each other’s greatest allies, although in recent years Europe has lost some of its importance vis-à-vis America. According to De Vries, France considers itself one of the most important countries within the European Union. “She is really there to defend Europe, even if there is also disagreement within the EU about more cooperation.”
After the visit to Washington, Macron will travel to New Orleans, a city once founded by the French and very vulnerable to climate change. ‘France has a special relationship with this, the visit is intended to promote the French language and culture. But they also have to talk about climate change. The city is partly below sea level,’ says De Vries.