French and German ministers to tell US don’t poach European Union investments

PARIS — France and Germany’s economy ministers will tell senior US officials not to try to actively poach green investments from Europe when they visit Washington next week to raise concerns about US green tech subsidies, two French officials said.

France’s Bruno Le Maire and Germany’s Robert Habeck are due to press concerns in Washington about tax credits under the United States’ Inflation Reduction Act that subsidizes products from electric cars to solar panels as long as they meet requirements on being locally produced.

The two are due to meet White House officials on Tuesday in addition to Treasury Secretary Janet Yellen, Trade Representative Katherine Tai and Commerce Secretary Gina Raimondo, the officials from France’s economy ministry said.

European Union (EU) governments are worried the tax credits not only put European producers at an unfair disadvantage but could be actively used to lure investment away from Europe to the United States.

The first official said there was little scope for new concessions from Washington for better treatment of EU companies after the European Commission already secured a partial win on electric vehicles built outside North America qualifying for tax credits if leased by consumers.

Nonetheless, the ministers are hoping to convince US officials to allow more leniency over local production requirements for critical materials used in electric vehicle batteries, the first official said.

They will also seek a US commitment to be transparent about subsidies companies receive under the Inflation Reduction Act, both officials said. —