© Reuters. U.S. Vice President Kamala Harris meets with French President Emmanuel Macron at the bilateral meeting at the Munich Security Conference in Munich, Germany February 17, 2023. Michael Probst/Pool via REUTERS
By Trevor Hunnicutt
MUNICH (Reuters) – French President Emmanuel Macron signaled on Friday that he would discuss concerns about U.S. electrical vehicle subsidies with Vice President Kamala Harris as they met during the Munich Security Conference.
“We are working hard,” on the issue, Macron said before their meeting.
While EU countries welcome the U.S. commitment to energy transition, they fear the U.S. Inflation Reduction Act’s (IRA’s) $369 billion of subsidies for electric vehicles (EVs) and other clean technologies could put companies based in Europe at a disadvantage.
Harris said they were also going to discuss their commitment to supporting Ukraine against Russia’s invasion but offered no comment about the subsidy issue before reporters were ushered out of a meeting between the two leaders.
The bill is a key part of Biden’s vision to deal with climate change, reinvigorate American manufacturing and compete with China, but it has rankled allies from Brussels to Seoul.
Macron, who U.S. President Joe Biden celebrated with a lavish state dinner in December, announced around that time that the two leaders had agreed to “fix” issues about the made-in-America EV law. But a solution from Washington that would be acceptable to France has not been forthcoming in the months since.
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France’s President Macron has signaled his concern about electric car subsidies will be part of the agenda when he meets with US Vice President Kamala Harris.
During a news conference Tuesday, Macron said the two officials would likely talk about climate change and the development of green technologies during their meeting. He mentioned electric car subsidies as one of the topics on the agenda.
“It is essential that we have similar policies on issues such as electric car subsidies,” Macron said, noting that the U.S. and Europe had divergent economic approaches to green technologies.
Macron acknowledged that countries had different subsidies in place, but “it is important that we move towards more harmonized policies and goals in this area.”
He highlighted the importance of developing cyberspace protocols and rules for developing green technologies. Macron noted that Europe had the most ambitious CO2 reduction policies in the world, but the U.S. had not committed to any such plans yet. He also noted that Europe had become the first region to produce its own electric car, Tesla.
Macron said he was open to discussion “on any front” as long as we can make progress and capitalize on shared development of green technology.
Harris and Macron are expected to meet in Paris on Wednesday. The vice president is heading to Europe to meet with world leaders as part of her first official diplomatic tour in her role as second in command in the Biden administration.
