Home News massive aid to US companies can ‘fragment the West’

massive aid to US companies can ‘fragment the West’

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French President Emmanuel Macron, on a state visit to Washington, warned the United States on Wednesday that its $430 billion investment and subsidy program to help their businesses and fight inflation risked “Fragmenting the West”.

Macron’s visit: for the United States, France remains a difficult… but strategic ally

In a speech to the French community at the French Embassy in Washington, Emmanuel Macron also warned against the ” risk “ that “Europe and France are becoming a sort of adjustment variable” of the rivalry between the United States and China, the two leading world powers.

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Discourage investment

On the first day of his state visit to Washington, the second after that of 2018 under the presidency of Republican Donald Trump, Emmanuel Macron showed himself ” direct “. The French president told his compatriots at the embassy that he “says with great frankness, friendship (to the American elected officials) (…) that what has happened in recent months is a challenge for us because we are starting to shift our focus on energy issues and the cost of war (in Ukraine) is not the same in Europe and the United States ».

“But above all, the choices made, whose objectives I share, in particular the Inflation Reduction Act (IRA, a program of environmental and social reforms and investments for American companies) are choices that will fragment the West”lamented the French president.

For Emmanuel Macron, the IRA “created such differences between the United States of America and Europe that those who work in many companies will just say to themselves ‘we don’t make investments on the other side of the ocean anymore'” Atlantic.

“These choices can only work if there is coordination”

During this lunch with American parliamentarians, he denounced the measures “super aggressive” taken by Democratic President Joe Biden to boost American industry, by pleading for better economic coordination on both sides of the Atlantic.

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“These choices can only work if there is coordination between us, if we decide together, if we resynchronize. »

Focused primarily on climate and social spending, the plan, dubbed “Inflation Reduction Act”provides more than 430 billion dollars of investment, including 370 billion to reduce greenhouse gas emissions by 40% by 2030, the largest effort ever made by the United States in this area.

Why Biden and Macron will (obviously) patch things up

On the first day of a state visit celebrating Franco-American friendship, the French president pleaded for “to try together to live up to what history has sealed between us, an alliance stronger than anything”saying his second state visit to the United States in four years “also shows the strength, the link between the United States and France”.

But he again warned his ally: the “The risk is that faced with the challenges of the time, the United States will first look at the United States, that’s normal (…) and then look at the rivalry with China, and, in a way, that the ‘Europe and France are becoming a sort of adjustment variable’ between the two leading world powers.

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