Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

In Washington, Macron to seek relief for Europe Inc amid China competition

Stock Markets Nov 25, 2022 01:31PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: US President Joe Biden (L) and French President Emmanuel Macron speak after posing for an informal group photo at a bench after a working dinner during the G7 Summit held at Elmau Castle, in Kruen near Garmisch-Partenkirchen, Germany June 26,
 
NG
-2.89%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
EDF
-0.08%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Michel Rose and John Irish

PARIS (Reuters) - French President Emmanuel Macron will be hosted by U.S. President Joe Biden next week in a rare state visit aimed at highlighting Franco-American friendship rather than the bitter economic competition between the two sides of the pond.

More than a year after Washington, London and Canberra torpedoed a big French submarine contract, pushing Franco-US relations to breaking point, the two countries are expected to put on a show of unity on common threats from Russia and China.

But the elephant in the Oval Room will be the U.S. Inflation Reduction Act (IRA). Europeans say the massive subsidy package to U.S. manufacturers could deal a lethal blow to their industries, which are already reeling from high energy prices caused by Russia's invasion of Ukraine.

Macron will try to convince the United States it is in their interest not to weaken European companies at a time Western allies are facing intense economic competition from China, which they say uses its economic might as diplomatic leverage.

"The pitch will be: there's obviously a Chinese challenge and we can help get others in the EU out of their naivete on this. But you can't ask us to help on China and do an IRA on us," a French diplomat told Reuters on condition of anonymity.

The French leader will try to negotiate exemptions for European companies on the model of those Mexico and Canada has already got, a French presidential adviser said.

German carmakers, for which the U.S. is a big export market, are among the biggest victims of the IRA package which subsides U.S.-made electric cars, the French presidential said. French carmakers do not export to the U.S. but France has major car parts suppliers, which would be affected.

Energy issues will also feature prominently in the talks at the White House, with France hoping to boost nuclear energy cooperation. Macron wants France to build more nuclear reactors but it is struggling with corrosion issues at its ageing plants.

French utility EDF (EPA:EDF) has drafted in hundreds of specialised workers, including welders, from U.S. nuclear plant maker Westinghouse, to help fix issues at French nuclear plants and avoid power outages in Europe this winter.

Macron will also travel to Louisiana, ostensibly to pay tribute to the state's French heritage, but also to discuss energy issues, the French presidential advisor said.

French oil giant TotalEnergies owns a big liquefied natural gas terminal in the state on the Gulf of Mexico and Macron, who has complained about the high price of U.S. gas exports, said he will bring up the issue with Biden.

"The United States produce cheap gas but sell it to us at high price," Macron told French executives on November 8. "And on top of that they have massive subsidies in some sectors that make our projects uncompetitive."

"I think that's unfriendly and I will go to Washington in a spirit of friendship at the end of the month... to simply plead for a level playing field," he said.

In Washington, Macron to seek relief for Europe Inc amid China competition
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email