France Fights Back Against US With Aid for Green Transition

  • Le Maire says Europe has place in US-China industrial rivalry
  • €500M a year of tax credits financed by cuts to other aid
A DS E-Tense Performance electric concept car at the Paris Motor Show in 2022.Photographer: Nathan Laine/Bloomberg
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The French government presented a green industry bill including tax credits and targeted bonuses for electric vehicles, seeking to rival US support for its businesses in the shift to an economy with lower-carbon emissions.

It is “urgent” to respond to the Inflation Reduction Act as more than half of global industrial investment is concentrated in the US, the government said in a presentation of the measures that also include tougher climate criteria in public procurement and speeding up procedures to open new factories.