Macron Accelerates Transatlantic Subsidy Race with EU Carmaking Funds: Europe Takes Priority

Introduction

French President Emmanuel Macron has announced a €8bn ($8.8bn) plan to revive the country’s auto industry, which has been hit hard by the Covid-19 pandemic. The plan includes subsidies for electric and hybrid vehicles, as well as support for research and development in the sector. The move is part of Macron’s broader push for a „Europe First“ approach to economic recovery, which he hopes will help the continent compete with the US and China.

Details of the Plan

The plan includes €1bn in subsidies for consumers who purchase electric or hybrid vehicles, as well as €2.5bn in aid for automakers to develop new models. Another €600m will be allocated to support the production of electric vehicle batteries in France. The government will also provide €300m to help automakers restructure their supply chains, and €200m to support the development of hydrogen fuel cell technology.

The plan is part of Macron’s broader push for a „Europe First“ approach to economic recovery, which he hopes will help the continent compete with the US and China. The French president has called for greater European cooperation in a number of areas, including defense, technology, and trade. He has also pushed for a more integrated European Union, with a common budget and greater fiscal coordination.

Impact on the Auto Industry

The plan has been welcomed by French automakers, who have been struggling to cope with the impact of the Covid-19 pandemic. The industry has been hit hard by factory closures and a drop in demand for new vehicles. The subsidies for electric and hybrid vehicles are expected to boost sales in the sector, while the support for research and development will help automakers develop new models to meet changing consumer demand.

The plan has also been praised by environmental groups, who have long called for greater support for electric vehicles. The subsidies for electric and hybrid vehicles are expected to help reduce emissions from the transport sector, which is a major contributor to air pollution and climate change. The support for the production of electric vehicle batteries in France is also seen as a positive step, as it will help reduce the country’s dependence on imported batteries.

Conclusion

Overall, Macron’s plan for the auto industry is part of a broader push for a „Europe First“ approach to economic recovery. The French president hopes that by investing in key sectors such as the auto industry, Europe can compete more effectively with the US and China. The plan has been welcomed by French automakers and environmental groups, who see it as a positive step towards a more sustainable and competitive auto industry. However, it remains to be seen whether the plan will be enough to revive the industry in the long term, given the challenges posed by the Covid-19 pandemic and the shift towards electric and autonomous vehicles

Original article Teaser

Europe First: Macron hits the gas in transatlantic subsidy race with EU carmaking cash

PARIS — Emmanuel Macron took his war of words with Washington to the mat Thursday by proposing a concrete counter to Washington’s electric car subsidies — a move likely to further heighten transatlantic tensions. France, home to major carmakers like Renault and Stellantis, will tailor its existing measures that encourage green vehicle purchases to specifically reward European manufacturers by the end of this year, the president said, calling on the rest of the European Union to take similar action. „We will be the first European country to reform the criteria for the allocation of the car bonus,“ Macron said in a speech at the Elysée Palace during an event on re-industrialization, where EU Internal Market Commissioner Thierry Breton also took

Details to Europe First: Macron hits the gas in transatlantic subsidy race with EU carmaking cash