March 24
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French and German economic ministers said they would insist that the U.S. Inflation Reduction Act cover European companies as much as possible, they said Tuesday during talks with their U.S. counterparts, Reuters reported.

The ministers are in the U.S. to express Europe's growing dissatisfaction with legislation that is designed to accelerate the transition to green technologies by supporting and subsidizing investment in new technologies.

"(The point) is to have the maximum of European components being included in the framework of the Inflation Reduction Act so they can be included in the tax benefits and subsidies that will be given to American products," said French Finance Minister Bruno Le Maire.

While Canadian and Mexican companies are entitled to take advantage of many of its provisions, the law does not help European competitors.

Le Maire and his German counterpart Robert Habeck, who are due to put their case to Treasury Secretary Janet Yellen, trade representative Katherine Tai and Commerce Secretary Gina Raimondo, fear European companies could be disadvantaged.

At stake is Europe's competitiveness in future industries, such as electric cars and batteries, as well as access to the raw materials used for them.

"A strong green industrial market in the U.S. and a strong green industrial market in Europe will help each other," Habeck told reporters in Washington.

For his part, Le Maire said Europe needs transparency about the specific subsidies and tax breaks offered to ensure "fair competition" between industries on both sides of the Atlantic.

While officials have said they are willing to address some European concerns, some U.S. lawmakers say giving tax breaks to European competitors would reduce the competitive advantage they would give to U.S. companies and limit investment in the United States.

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