Biden ‘confident’ US can address EU concerns over IRA subsidies

Macron also sounded an optimistic note on the dispute, saying he and Biden had agreed to “resynchronize our approaches” to providing government support for critical industries such as semiconductors, electric vehicle batteries and hydrogen.

“Everything that is absolutely decisive, because in fact we share the same vision and the same will,” Macron said.

French and European officials fear that the $369 billion in new subsidies planned for clean technology and renewable energy in the Cut Inflation Act could divert investment from Europe to the United States.

They say the blow to European industry also comes at a particularly difficult time, with European consumers and businesses already struggling with high energy prices due to the war in Ukraine and facing the prospect of a recession next year.

Macron has launched calls for the 27-nation European Union to move forward with its own set of green subsidies under the “Buy European” banner, a move a senior Biden administration official has signaled that she could support.