PARIS – French President Emmanuel Macron on Monday will host a dinner with several European executives to persuade them not to shift production to the United States, where energy prices are lower and the Inflation Reduction Act proving attractive.
European leaders have been alarmed by the massive anti-inflation measures passed by Joe Biden authorities, causing conditional tax breaks on U.S.-produced content and leading EU industries to perceive investment in Europe as less competitive.
“We are having a hard time with companies that are starting to consider moving production abroad or future investments outside of Europe,” a French official said.
At the Elysee Palace, Macron will seek to convince executives from companies including the Solvay and chemical groups. Air Liquide, the automaker Volvo and BMW carpharmaceutical giant AstraZeneca and telecom groups Ericsson and Orange stay in Europe and choose France for future investments.
Macron, who has called on the European Union to launch his own ‘European Purchase Act’ to subsidize European manufacturing, has met opposition from more anti-protectionist members of the bloc. .
It’s not clear what Macron will say to executives to convince them not to move to the US. But France unveiled a number of measures over the weekend to ease the impact of high energy bills on French companies.
European companies have become increasingly acrimonious about the impact of rising energy prices since Russia’s invasion of Ukraine, which has sent gas and electricity prices soaring.
Eric Trappier, CEO of Dassault Aviation, head of the French metal industry federation, warned in Les echo newspaper over the weekend that Europe should protect its industry more aggressively or see it move to other shores.
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