PARIS — The leaders of France and Spain joined forces in Barcelona Thursday to call for a “proactive” response to Washington’s multi-billion-dollar green subsidies package, after signing a friendship and cooperation treaty.
Speaking at a press conference, French President Emmanuel Macron said France and Spain had “the same convergence of points of view” when it comes to how the EU should respond to subsidies under the United States’ so-called Inflation Reduction Act, which many in Europe fear will create unfair competition for businesses on their Continent.
“We are both aware of the fact that we need to react in a very proactive way … We need a real Made in Europe strategy and instruments that are very easy to use for our companies,” Macron said.
France is pushing for EU capitals to loosen rules on state subsidies and create an EU sovereign fund to boost green industries across the Continent amid fears that the U.S. incentives will siphon investments away from Europe.
Echoing Macron’s words at the press conference, Spanish Prime Minister Pedro Sánchez said Europe was “facing a critical moment” due to the war in Ukraine and “trade decisions taken by our allies.”
A joint statement, released alongside the treaty, said France and Spain “defend an ambitious strategy that [must] be implemented quickly to guarantee the competitivity of our economy.”
“France and Spain support fast, agile and effective solutions to accelerate and simplify existing instruments and funds, including Next Generation” — the EU’s COVID recovery scheme — “towards a more ambitious European industrial policy,” the statement added.
