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Macron hosts European CEOs to counter US move temptation

French President Emmanuel Macron on Monday will host a dinner with a number of European chief executives to convince them not to move production to the United States, where lower energy prices and the Inflation Reduction Act is proving a lure.

November 21, 2022
21 November 2022

PARIS, Nov 21 (Reuters) – French President Emmanuel
Macron on Monday will host a dinner with a number of European
chief executives to convince them not to move production to the
United States, where lower energy prices and the Inflation
Reduction Act is proving a lure.

European leaders have been alarmed by massive anti-inflation
measures passed by Joe Biden’s administration, which make tax
breaks conditional on U.S-manufactured content and which EU
industries say make investment in Europe less competitive.

“We’re having difficulties with companies which are starting
to consider offshoring their production or making future
investment outside Europe,” a French official said, listing high
energy costs and the U.S. legislation as reasons.

At the Elysee palace, Macron will seek to convince
executives from companies including chemical groups Solvay
and Air Liquide, carmakers Volvo
and BMW, pharmaceutical giant AstraZeneca and
telecom groups Ericsson and Orange to stay
in Europe and choose France for their future investments.

Macron, who has called on the European Union to launch its
own ‘European Buy Act’ to subsidise European production, has
encountered resistance from the more anti-protectionist members
of the bloc.

It was unclear what Macron would tell the executives to
convince them not to move to the U.S. But France has unveiled a
number of measures over the weekend to cushion the impact of
high energy bills for French companies.

European companies have been increasingly strident about the
impact of soaring energy prices since Russia’s invasion of
Ukraine, which has pushed up gas and electricity prices.

Eric Trappier, CEO of Dassault Aviation, who heads
the French federation of metals industries, warned in the Les
Echos newspaper over the weekend that Europe should protect its
own industry more aggressively or see it move to other shores.
(Reporting by Michel Rose
Editing by Bernadette Baum)

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