Report: Scholz, Macron Agree on Pushback against US

By Staff, Agencies

The leaders of Germany and France have reportedly reached a consensus that the EU will have to retaliate against the US if it goes ahead with planned tax cuts and energy benefits, aimed at encouraging firms to shift production stateside.

According to Politico, Olaf Scholz and Emmanuel Macron are both concerned over the US President Joe Biden administration’s Inflation Reduction Act, which they deem “protectionist.”

The matter was reportedly discussed at their lunch in Paris. According to the outlet, citing “people familiar with their discussions,” the German chancellor and French president agreed that the state subsidy plan announced by the Biden administration would constitute unfair competition, and should not go unanswered.

Politico noted that their agreement came despite differences of opinion between Scholz and Macron on other major issues, including energy and defense.

To counteract Washington’s plans, Paris and Berlin reportedly agreed to propose similar EU-wide incentive schemes for businesses.

However, if implemented, the measure would risk sparking a trade war between the bloc and the US, the article claimed.

Appearing on the TV channel France 2 on Wednesday night, Macron called for a “Buy European Act like the Americans,” adding that the EU should “reserve [our subsidies] for our European manufacturers.”

“[Scholz and I] have a real convergence to move forward on the topic, we had a very good conversation,” Macron added.

However, the two European powerhouses do not plan to enter confrontation mode just yet, according to Politico, and would prefer to strike a compromise with the US at the negotiating table.