Thierry Breton wants a “European sovereignty fund” in the face of American subsidies

“We must adjust our own rules to facilitate public investment in the environmental transition,” added Ursula von der Leyen on Sunday.

The European Commissioner for the Internal Market, Thierry Breton, calls for the creation of a “european sovereignty fund to support industrial projectsand deal with the American Inflation Reduction Act (IRA), criticized by Emmanuel Macron during his visit to the United States.

The European Union has been concerned for several months about the effects of this 420 billion dollar plan by American President Joe Biden largely devoted to the climate and adopted last summer, at the heart of an official visit by Emmanuel Macron across the Atlantic. the last days. This plan provides, among other things, for reforms favoring companies established in the United States, particularly in the sectors of electric vehicles, batteries, tech, renewable energies and even hydrogen.

He “leads to distortions of competition at the expense of EU companies“, says Thierry Breton in an interview with the Sunday newspaper, after having threatened at the beginning of November to”go to the World Trade Organization (WTO)to make his point. “A working group has already been created with representatives from the White House and the European Commission“, he adds.

Emmanuel Macron said on Friday that he wanted the question of “exemptionsdemanded in the United States for European industries or “settled“by the first quarter of 2023 after judging the day before”super aggressivesome of the US measures. The American president said he was ready to correct “defaultsof his law, which he nevertheless defended tooth and nail. “After the overtures obtained in Washington by the President (Macron), I am confident that the efforts of the European Union will bear fruit. Quicker than you think, I hope. Maybe in the next few days!“, adds Thierry Breton in the JDD .

A “too heavy” regulatory framework

On the other hand, the commissioner stresses the need for Europe to improve its attractiveness and competitiveness by focusing on “technology and strategic sectors for the success of its green transition“, in particular wind turbines, solar energy and electricity networks and by adapting a regulatory framework “too heavy“. In front of the energy crisisto American competition and to Chinese economic policy, he advocates “a European sovereignty fund to support industrial projects“, without forgetting the national plans”to coordinate“. Emphasizing the different debt conditions depending on the States, Thierry Breton finally affirms that he “should probably consider financing around 2% of the European Union’s GDP, i.e. around 350 billion euros“.

On Sunday, the boss of the European Commission went further, indicating that the EU must take measures to “rebalancingto smooth out thedistortionsof competition caused by Joe Biden’s massive US subsidies. All in “working with the United States to resolve the most problematic aspectsof their plan,we must adjust our own rules to facilitate public investment in the (environmental) transition and we must reassess the need for European funding», indicated Ursula von der Leyen in a speech at the College of Europe in Bruges (Belgium).

SEE ALSO – Macron’s visit to the United States: “It is better that we show ourselves united even if we have differences”, according to Jean-Claude Beaujour

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