France's Le Maire: U.S. Inflation Reduction Act law is major threat to EU companies

It could create a major shock on European industry," Le Maire told BFM TV. European industries fear that the bill, which gives tax credit for each eligible component produced in a U.S. factory, would take away potential investment from the continent. The IRA, which was signed into law in August, also provides a tax credit of 30% of the cost of new or upgraded factories that build renewable energy components.

French Finance Minister Bruno Le Maire said on Monday that the United States' new Inflation Reduction Act (IRA) law was a major threat to European companies and that the EU had to stand firm against it. "We must clearly tell our U.S. partners that it is a major problem for us. It is not acceptable. It could create a major shock on European industry," Le Maire told BFM TV.

European industries fear that the bill, which gives tax credit for each eligible component produced in a U.S. factory, would take away potential investment from the continent. The IRA, which was signed into law in August, also provides a tax credit of 30% of the cost of new or upgraded factories that build renewable energy components.