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U.S., France agreed to “fix” U.S. subsidies issues, says Macron
Global Banking and Finance Review
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(Reuters) -President Joe Biden and French President Emmanuel Macron agreed during a state visit earlier this week to “fix” issues arising from U.S. legislation that includes subsidies for American-made products, Macron said in a bid to assuage European concerns.
(Reuters) -President Joe Biden and French President Emmanuel Macron agreed during a state visit earlier this week to “fix” issues arising from U.S. legislation that includes subsidies for American-made products, Macron said in a bid to assuage European concerns.
Biden’s Inflation Reduction Act is a new $430 billion bill offering massive subsidies for U.S.-made products and aimed at addressing the climate crisis and promoting renewable energy.
But European leaders say the legislative package is unfair to non-American companies and would be a serious blow to their economies as Europe deals with the fallout from Russia’s February invasion of Ukraine.
“What we decided with President Biden is precisely to fix this issue. And they are fixable,” Macron told CBS’ 60 Minutes in an interview released on Sunday.
On Thursday, speaking alongside Macron, Biden said: “There are tweaks that we can make that can fundamentally make it easier for European countries to participate and or be on their own.”
(Reporting by Costas Pitas in Los Angeles; Editing by Cynthia Osterman and Diane Craft)
The Inflation Reduction Act is a U.S. legislation aimed at addressing climate change by providing substantial subsidies for American-made products, particularly in renewable energy sectors.
Subsidies can create an uneven playing field in international trade by favoring domestic producers over foreign competitors, potentially leading to trade tensions and disputes.
Renewable energy refers to energy derived from natural sources that are replenished constantly, such as solar, wind, hydro, and geothermal energy, which are essential for sustainable development.
Economic impact refers to the effect of an event, policy, or market change on the economy, including changes in employment, production, and overall economic growth.
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