German Minister: EU and US can build common green technology markets

(Patria) - German Minister of Economy Robert Habeck called for European-American cooperation in 'green' investments ahead of his visit to the US, proposing that the US and EU jointly build markets for green technologies.

- We can build a green bridge across the Atlantic and build common green markets - Habeck said, according to a statement from the Ministry of Economy regarding the schedule of his visit to the US, which will be joined by his French counterpart Bruno Le Maire.

French officials, on the other hand, said on Saturday that Le Maire and Habeck plan to ask their American counterparts during meetings not to encourage European companies to move to the US.

- One of the ministers' messages will be that European companies should not be approached with incentives to move their facilities to the US. There will be enough space for everyone to invest in both Europe and the US - said one official.

The goal, according to another French official, is to avoid "aggressive offers" to companies in the EU to invest in the US.

European governments fear that US subsidies for green technology and lower energy costs will lure their companies across the Atlantic.

Washington, through the Inflation Reduction Act (IRA), has provided subsidies for products such as electric cars and solar panels, on the condition that they are produced in the US.

- The US is now directing its economy towards green markets and is striving to reduce costs in the development of climate-friendly technologies at an accelerated pace.

This is good, but it is important that it is done through friendly, equal competition and that progress is made in the development of climate-neutral technologies - stated the German minister in the statement.

The German and French ministers will meet in Washington with US Treasury Secretary Janet Yellen, Trade Representative Katherine Tai, and Commerce Secretary Gina Raimondo, Hina reports.

Unnamed French officials emphasized that the room for new US concessions regarding the treatment of EU companies is modest, after the European Commission secured tax breaks for electric vehicles for leasing.

However, the ministers hope to achieve a more lenient approach from the US regarding the location of production of key raw materials used in electric car batteries, said one official.