Macron Accelerates Transatlantic Subsidy Race with EU Carmaking Funds in Europe-First Approach

Introduction

French President Emmanuel Macron has announced a €8bn ($8.8bn) plan to boost the country’s auto industry, as part of a wider European Union (EU) effort to support the sector. The move comes as the industry struggles with the impact of the coronavirus pandemic, which has led to factory closures and a sharp drop in demand for new cars. The plan includes subsidies for electric and hybrid vehicles, as well as support for research and development.

The Plan

The French government’s plan includes €1bn in subsidies for consumers who buy electric or hybrid vehicles, as well as incentives for carmakers to produce more environmentally friendly models. The government will also provide €600m to support the development of new battery technologies, which are seen as crucial to the growth of the electric vehicle market.

In addition, the plan includes €2bn in loans for carmakers, with the aim of helping them to weather the current economic crisis. The government will also provide €1.5bn in grants to support research and development in the sector, with a focus on developing new technologies and improving the efficiency of existing ones.

Impact on the Industry

The French government’s plan has been welcomed by the country’s auto industry, which has been hit hard by the pandemic. The sector employs around 400,000 people in France, and is a key part of the country’s economy. The plan is expected to help carmakers to invest in new technologies and to create new jobs in the sector.

However, the plan has also been criticised by some who argue that it is protectionist and could lead to a transatlantic subsidy race. The US government has already expressed concern about the EU’s plans to support its auto industry, and has threatened to retaliate with tariffs on European goods. This could lead to a trade war between the two regions, which would be damaging for both sides.

Conclusion

The French government’s plan to support its auto industry is part of a wider EU effort to boost the sector. The pandemic has had a severe impact on the industry, and governments around the world are looking for ways to support it. However, there are concerns that the EU’s plans could lead to a transatlantic subsidy race, which would be damaging for both sides. It is important that governments work together to find a solution that supports the industry without creating trade tensions

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

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