France wants to revolutionize European industrial policy

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

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

Europe sees this as an attack on its economy. According to the French newspaper, there is a “real risk” of deindustrialization, which is read as a call to action for European partners.

Hints refer to corporate debt