"Europe is going through a difficult period because of the war [in Ukraine] and also because of the trade decisions made by our colleagues in the United States," Macron said at a joint press conference with Spanish Prime Minister Pedro Sanchez in Barcelona, broadcast by the Elysee on Twitter.
"If Europe does not respond, accelerating the 'greening' of the US economy will mean the deindustrialization of Europe."
The two leaders agreed that Europe should take a "voluntaristic" approach to this issue.
In December 2022, Macron said the US and France agreed to re-synchronize their approaches to address serious trade concerns European partners have expressed over the IRA. He called the US law "unfriendly" and "aggressive," saying Europe needed to speed up work on own business support initiatives. Macron suggested that Europe might come up with an appropriate response to the IRA by early 2023.
The IRA, signed into law by US President Joe Biden in August 2022, unlocks $369 billion in tax credits and subsidies for US consumers and companies making green tech products in the country starting January 2023. Several EU companies reportedly said they would invest in the US rather than the EU, with rising energy prices at home being a crucial factor.
Concerns have been rising in Europe that the US tax credit plan could kick off a subsidy race between the transatlantic allies at a time when they want to show unity in the face of the Ukraine conflict.