France, Germany band together to oppose US's "challenge"
(MENAFN) A landmark Unites States incentive program that the European Union considers discriminatory has prompted calls from Germany and France for a coordinated European Union response out of concern that it could lead to a trade conflict between Brussels and Washington.
French Finance Minister Bruno Le Maire and his German colleague Robert Habeck issued a joint statement on Tuesday in which they urged the European Union to adopt an industrial policy that would allow its corporations "to thrive in the global competition."
They also mentioned that “we want to coordinate closely a European approach to challenges such as the United States Inflation Reduction Act.”
They claimed that in order to accomplish this, they would "explore industrial policy possibilities to prevent downside effects of protectionist measures by third countries" and make sure that everyone complied with WTO regulations.
The United States President Joe Biden signed the Inflation Reduction Act in August, which offers significant tax breaks and subsidies to support the country's green economy. To address the climate crisis and the rising price of goods, the White House called it its "most aggressive action."
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