Germany and France warned that European businesses will need to unleash investments on a nearly unparalleled scale to keep from falling behind U.S. and Chinese firms as countries revamp their economies to make them more climate friendly.
German Chancellor Olaf Scholz and French President Emmanuel Macron met in Paris Sunday to discuss how the European Union should respond to President Joe Biden’s Inflation Reduction Act, which includes roughly $500 billion in new spending and tax breaks over a decade to benefit U.S. companies.
The EU argues that the law, which came into effect this year, doesn’t comply with international rules and would unfairly entice companies to shift investments to the U.S. from Europe. The bloc’s leaders will meet next month to discuss their options, one of which is to file a complaint with the World Trade Organization.
