France wants to revolutionize European industrial policy

Berlin, Paris France strives for a far-reaching reform of the European in response to the US subsidies for green technologies economic policy on. The Government of President Emmanuel Macron outlines a “Made in Europe strategy” with more state aid and new EU funds in a working paper available to the Handelsblatt. In strategically important sectors, Paris even wants to agree on European production targets.

At the EU summit in mid-December, the heads of state and government asked the Commission to present an answer to the American Inflation Reduction Act (IRA) at the beginning of 2023. Among other things, the US program provides more generous tax breaks for companies if they USA to produce.

Europe sees this as an attack on its own economy. There is a “real risk” of de-industrialization, according to the French paper, which reads like a call to action for the European partners.

Hints point to corporate debt