Macron wants European response to U.S. IRA to amount to 2% of GDP

but nothing much will be left (in Europe) in the end," Macron said. He said Europe's response, via national and EU instruments, should amount to about 2% of its output.

French President Emmanuel Macron said on Thursday Europe needed an urgent response to the U.S. Inflation Reduction Act to ensure a future for its industry and welcomed the mandate given to the European Commission to come up with a plan early next year. "When you have two superpowers massively subsidise some sectors, you could decide not to do anything, to respect the rules and the purity of (free-market) doctrine ... but nothing much will be left (in Europe) in the end," Macron said.

He said Europe's response, via national and EU instruments, should amount to about 2% of its output. "It's not by opening our market more that we will get there," he said, in response to a question about a possible trade deal with the United States.