Early last week the Economic Ministers of France and Germany met with U.S. Commerce Secretary Gina Raimondo and Treasury Secretary Janet Yellen. The economic dignitaries discussed the proposed $369 billion worth of subsidies for ‘green’ technologies that are included in the Biden administration’s Inflation Reduction Act (IRA.) The Europeans are concerned that the proposed subsidies will negatively impact investment in the European ‘green’ industry. They are also concerned that the US package could make it challenging for European industries to obtain the raw materials required to produce these technologies. The French and German ministers requested “increased transparency about the parameters of these subsidies.” Yellen agreed with the Europeans to provide the requested transparency so they “can match them if necessary.” The German minister said after the meetings, “We will create a technical group to make this transparency work.” The French minister added, “You cannot have any fair competition if there is not full transparency on the level of public subsidies and public tax credits that are granted to private companies.”
In response to the IRA, the European Commission has released a package of its own called the ‘Green Deal Industrial Plan’ which aims at making the European ‘green’ energy industry more competitive.