France, Germany to press US officials on green investments

A member of protocol adjusts the US and EU flags before the arrival of ministers for an extraordinary EU foreign ministers meeting at the European Council building in Brussels on March 4, 2022, in this file photo taken on March 4, 2022. PHOTO AP PARIS - France and Germany's economy ministers will tell senior US officials not to actively poach green investments from Europe when they visit Washington next week to raise concerns about US green tech subsidies, two French officials said.

France's Bruno Le Maire and Germany's Robert Habeck are due to press concerns in Washington about tax credits under the United States' Inflation Reduction Act that subsidies products from electric cars to solar panels as long as they meet requirements for being produced locally.

The two are due to meet White House officials on Tuesday, as well as Treasury Secretary Janet Yellen, Trade Representative Katherine Tai and Commerce Secretary Gina Raimondo, according to officials from France's economy ministry.

The tax credits could be used to lure investment away from Europe to the US, as European producers are worried about the unfair disadvantages of the tax credits.

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One of the ministers' messages will be to not approach European companies about moving plants to the US. One official said that there will be enough room for everyone to invest both in Europe and the US. The second official said the goal was to avoid aggressive pitches to EU firms to invest in the United States.

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After the European Commission already secured a partial win on electric vehicles built outside North America that qualify for tax credits if consumers leased by consumers, the first official said there was little scope for new concessions from Washington for better treatment of EU companies.

The ministers are hoping to convince the US authorities to allow more leniency over local production requirements for critical materials used in electric vehicle batteries, the first official said.

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Both officials said they will be looking for a US commitment to be transparent about subsidies companies receive under the Inflation Reduction Act.

That is important because it could determine how much state support European companies can get under a proposal by the European Commission to allow third-country subsidies in Europe.