London Daily

Focus on the big picture.
Wednesday, Feb 01, 2023

Revealed: France’s massive ‘Made in Europe’ strategy

Revealed: France’s massive ‘Made in Europe’ strategy

The EU is reeling as it debates how to respond to a recent U.S. subsidy push.

The French government has pitched a complete overhaul of the European Union’s approach to boosting its industry, offering a sweeping “Made in Europe” strategy to counter a flood of U.S. subsidies, according to documents seen by POLITICO.

In a letter dated January 9, the French government calls on the EU to accelerate production targets, weaken state aid rules, establish an emergency sovereignty fund and mobilize trade defense instruments — all in reaction to a recent U.S. bill, the Inflation Reduction Act, which included $369 billion in climate-friendly subsidies.

The move follows a pledge earlier this month from French President Emmanuel Macron, in which he jockeyed for the bloc to make progress on a "Made in Europe" strategy. The campaign has become a point of friction within the EU — while numerous countries support France's endeavor in theory, there is little agreement over exactly how to accomplish it.

Production targets

In the letter, from France’s general secretariat for European affairs, the French say the EU should design new production targets “for reducing our dependencies” across sensitive sectors.

“Very concretely, the Union should set itself production targets to be achieved by 2030,” based on the model of the bloc’s draft Chips Act, the letter says. 

The Chips Act is part of the EU's broader effort to ensure Europe doesn't have to rely on countries like China for the technology that powers modern technology. The bloc is also rapidly reconsidering how it sources its energy in the wake of Russia's war in Ukraine.

The letter says the EU must embark on “reforms to simplify and accelerate the procedures for granting permits for the installation of new production sites” as well as a complete energy market reform, which could aid in companies' production and investment decisions.

State Aid

The European Commission is also currently in the process of revising its emergency state aid rules, which have gone through a series of iterations since the start of the pandemic and the war in Ukraine.

Traditionally, the EU has been reluctant to offer state aid in all but the most extreme circumstances. But in its letter, France says the EU should embark on “targeted support – via subsidies or tax credits – based on criteria defined upstream, in a limited number of sectors.” 

“These mechanisms could take the form of tax advantages (tax credits) or direct subsidies targeted at the strategic sectors,” the letter states. 

Those sectors — the French say — could include photovoltaics, batteries, hydrogen and critical materials. The letter also suggests only ending the relaxation of these state aid rules in 2030. They are currently due to expire at the end of this year.

It adds that certain small and medium enterprises should be exempted from state aid limits, particularly if they are involved as partners in the EU’s Important Projects of Common European Interest (IPCEI) program. And it argues that aid notification thresholds for environmental or decarbonization projects should be increased to €20 million per company and per project.


Commission President von der Leyen is due on February 1 to offer EU countries her thoughts on responding to the U.S. efforts

The Commission’s antitrust enforcers are due to circulate their latest draft of the bloc’s emergency state aid rules to EU nations on Friday.

Sovereignty Fund


France also suggests the establishment of an emergency fund, supported by money from the EU’s post-pandemic recovery pot, as well as from REPowerEU — the bloc’s financing framework for diversifying investments away from Russian fossil fuels. 

The letter recommends reallocating €365 billion “not yet disbursed as a priority to sectors that are strategic for European industry” and adds that of the €221 billion in loans that remain to be allocated, EU countries “should be able to give priority to strategic European industrial sectors.”

The emergency sovereignty fund should be operational before the end of 2023, the letter says. 

The French are cautious, however, to ensure that a new influx of state aid doesn't fracture the EU's vaunted single market. The fear is that loosening state aid rules could offer an advantage to deeper-pocketed countries within the EU. To counteract this, the letter suggests a repeat of SURE, a common debt instrument used at the onset of the pandemic that offered countries favorable loans.


Trade defense


In order to preserve the fairness of competition rules internationally, France’s letter concludes by saying that “the EU's trade strategy should be more articulated around the defense of the European single market.” To this end the Commission should make use of trade defense instruments as outlined in World Trade Organization rules, the letter notes. 

Commission President von der Leyen is due on February 1 to offer EU countries her thoughts on responding to the U.S. efforts. Her messaging will come just ahead of an EU leaders’ summit scheduled for February 9-10 in which the issue is due to take center stage.

Newsletter

Related Articles

London Daily
Close
0:00
0:00
WARNING GRAPHIC CONTENT - US Memphis Police murdering innocent Tyre Nichols
You're Beautiful - James Blunt (Boyce Avenue acoustic cover)
Almost 30% of professionals say they've tried ChatGPT at work
You Are So Beautiful
Interpol seeks woman who ran elaborate exam cheating scam in Singapore
Postmodern Jukebox European Tour Version
What is ChatGPT?
An old French tune (by Georges Brassens) Pomplamoose ft. John Schroeder
Bill Gates is ‘very optimistic’ about the future: ‘Better to be born 20 years from now...than any time in the past’
Sattahip Motor Show 20
China is opening up for foreign investors.
SONATE AU CLAIR DE LUNE - Moonlight sonata
Tesla reported record profits and record revenues for 2022
A kiss to build a dream on
Germany confirms it will provide Ukraine with Leopard 2 tanks
Wiz Khalifa - See You Again ft. Charlie Puth, Furious
Prince Andrew and Virginia Giuffre Photo Is Fake: Ghislaine Maxwell
Wonderful Tonight - Eric Clapton (Boyce Avenue acoustic cover)
Opinion | Israel’s Supreme Court Claims a Veto on Democracy
Mean Blues
Moonwalker Buzz Aldrin Gets Married On His 93rd Birthday
La Chansonnette
Who’s Threatening Israeli Democracy?
Pattaya Addicts
Federal Reserve Probes Goldman’s Consumer Business
Franz Liszt - Liebestraum - Love Dream
China's first population drop in six decades
Dream a little dream of me
Microsoft is finalising plans to become the latest technology giant to reduce its workforce during a global economic slowdown
Tu Vuo' Fa' L'Americano - Hetty & the Jazzato Band
Israelis rally in three cities against Netanyahu legal reforms
Unchained Melody sung like you've NEVER heard!
China's foreign ministry branch in Hong Kong urges British gov't to stop the biased and double standards Hong Kong report
Dave Brubeck - Take Five
Tesla slashes prices globally by as much as 20 percent
Édith Piaf - Non, Je Ne Regrette Rien (Sofie)
Japan prosecutors indict man for ex-PM Shinzo Abe murder
Rondo Alla Turca
1.4 Million Copies Of Prince Harry's Memoir 'Spare' Sold On 1st Day In UK
Kiss of fire
After Failing To Pay Office Rent, Twitter May Sell User Names
Ed Sheeran - Perfect (Amadeus violin cover instrumental)
Lisa Marie Presley, singer and daughter of Elvis, dies aged 54
Tom Jones - I´ll Never Fall In Love Again 1967, 1989, 2001
FIFA president questioned by prosecutors
Israel Cachao López - Guajira Clásica
Britain's Sunak breaks silence and admits using private healthcare
Edward Maya - Stereo Love (feat. Vika Jigulina) (Extended Mix)
Dirty bomb fears as URANIUM is found in cargo at Heathrow
Strauss - Radetzky March - Karajan
Hype and backlash as Harry's memoir goes on sale. Unnamed royal source says prince 'kidnapped by cult of psychotherapy and Meghan'
La vie en rose
Saudi Arabia set to overtake India as fastest-growing major economy this year 
Despacito (Piano Cover) - Peter Bence
Google and Facebook’s dominance in digital ads challenged by rapid ascent of Amazon and TikTok
The Temptations - My Girl (Smokey Robinson Tribute) 2006 Kennedy Cent
FTX fraud investigators are digging deeper into Sam Bankman-Fried's inner circle – and reportedly have ex-engineer Nishad Singh in their sights
Orlando Cachaito Lopez Redencion
TikTok CEO Plans to Meet European Union Regulators
Edith Piaf - NON, JE NE REGRETTE RIEN
UK chaos: Hong Kong emigrants duped by false prospectus
RADETZKY MARCH-2008-Wien, New Year Concert
France has banned the online sale of paracetamol until February, citing ongoing supply issues
Only you (And you alone)
Japan reportedly to give families 1 million yen per child to move out of Tokyo
Beautiful in White x Canon in D (Piano Cover by Riyandi Kusuma)
Saudi Arabia’s female ambassadors: Who are the five women representing the Kingdom?
Strangers In The Night
Will Canada ever become a real democracy?
Charles Aznavour - La Boheme
Hong Kong property brokerages slash payrolls in choppy market
Summer time
U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTX
Sting and Stevie Wonder - Fragile (from Sting's 60th birthday concert)
Effect of EU sanctions on Moscow is ‘less than zero’ – Belgian MEP
Aux Champs Elysees
Coinbase to Pay $100 Million in Settlement With New York Regulator
Stand By Me - Ben E. King (Boyce Avenue acoustic cover)
FTX assets worth $3.5bn held by Bahamas securities regulator
La Mer (Beyond the Sea) – Avalon Jazz Band
A Republican congressman-elect is under investigation in New York after he admitted he lied about his education and work experience.
She
Brazilian football legend Pele, arguably the greatest player ever, has died at the age of 82.
Nathalie Song by Enzo Petrachi Stjepan Hauser Cello
Hong Kong to scrap almost all its Covid rules
Shape of My Heart - Sting (Boyce Avenue acoustic cover)
EU calls screening of travellers from China unjustified
Radiohead - Creep
US imposes Covid testing for visitors from China
Quizás,Quizás,Quizás - Andrea Bocelli - Jennifer Lopez
Clashes erupt in central Paris after shooting at a Kurdish cultural center
Perhaps, Perhaps, Perhaps - Multi-Couples
Ukraine President Volodymyr Zelenskyy Addresses Joint Session of Congress - FULL SPEECH
Pentatonix Havana
If a country is denied the right to independence by another, it is not in a union. It is in a dictatorship.
Paula Cole - Autumn Leaves
Where is Rishi? Chancellor Jeremy Hunt's excuses about the UK's economic challenges just don't make sense
Oscar Benton Bensonhurst Blues
Former FTX CEO Bankman-Fried finally arrested in Bahamas after U.S. files charges
OH NANANA vs ABUSADAMENTE
Nina Simone - ”I Put A Spell On You”. Vezi aici cum cântă Jeremy Ragsd
NIGHTWISH - The Phantom Of The Opera
Motorshow 2016 Tanjay Negros Oriental
Monica Bellucci - Ti Amo
Michael Jackson - Billie Jean Milena The Voice France 2018
Michael Buble (Help Me Make It Through The Night) feat Loren Allred
Memories Canon In D - Maroon 5 (Boyce Avenue piano acoustic cover)
Matteo Simoni - Marina
Maroon 5 - One More Night
Maroon 5 - Memories
Mark Knopfler - Brothers In Arms (Berlin 2007 Live)
Mark Knopfler & Emmylou Harris - Romeo And Juliet (Real Live Roadrunni
Marina, Marina - The LUCKY DUCKIES intimist live concert at Guimarães
Major Lazer & DJ Snake – Lean On Mauranne The Voice France 2016
Love Theme from Romeo and Juliet - Joslin - Henri Mancini, Nino Rota
LoLa & Hauser - Love Story
Linkin Park Jay-Z - Numb Encore (Live 8 2005)
Hallelujah Mennel Ibtissem, The Voice France Leonard Cohen
Leonard Cohen - Dance Me to the End of Love
Leonard Cohen & Natasha Rostova - Dance me to the end of love
La casa de papel - Bella Ciao
La Camisa Negra
L'italiano (Toto Cutugno) - The Gypsy Queens
Juanes - La Camisa Negra
Jonathan and Charlotte - Britain's Got Talent 2012 Live Semi Final - U
John Powell - Assassin's Tango
Joe Cocker - You Can Leave Your Hat On (LIVE in Dortmund)
Joe Cocker - Unchain My Heart 2002 Live
Joe Cocker - A Whiter Shade Of Pale
Jay Z & Alicia Keys - Empire State of Mind LIVE
Jason Mraz - Im Yours (live)
Jarrod Radnich - Bohemian Rhapsody - Virtuosic Piano Solo
James Blunt - You're Beautiful
James Blunt - You're Beautiful & Bonfire Heart (Live at The Nobel Peac)
If You Go Away - Helen Merrill & Stan Getz (Tribute to Virna Lisi)
I'LL BE MISSING YOU
I Say a Little Prayer
Hotel California ( Eagles ) 1994 Live
Historia de un amor - Luz Casal. Vezi interpretarea Biancăi Sumanariu
Here Comes The Sun - The Beatles (Boyce Avenue acoustic cover) on Spot
Heart - Stairway to Heaven Led Zeppelin - Kennedy Center Honors
HAVANA by Camila Cabello Zumba Pre Cooldown TML Crew Kramer Pastra
HAUSER and Señorita - I Will Always Love You
HAUSER - Waka Waka
HAUSER - Sway
HAUSER - Lambada
HAUSER - Historia de un Amor
HAUSER - Despacito
Great Pretender
Georgia May Foote & Giovanni Pernice Samba to 'Volare' - Strictly Come
Gary Moore - Still Got The Blues
GIPSY KINGS VOLARE Penelope Cruz
Fugees - Killing Me Softly With His Song
French Latino - Historia de un Amor
For A Few Dollars More The Danish National Symphony Orchestra (Live)
Flashdance • What a Feeling • Irene Cara
Filip Rudan - “Someone You Loved” Audicija 4 The Voice Hrvatska Sez
Eric Clapton - Wonderful Tonight
Enya - Only Time
Enrique Iglesias - Bailando (English Version) ft. Sean Paul
Enrique Iglesias - Bailamos
Elena Yerevan Historia de un amor
Ed Sheeran - Shape of You (Official Music Video)
Ed Sheeran - Perfect Symphony [with Andrea Bocelli]
Ed Sheeran - Perfect (Official Music Video)
Easy On Me - Adele (Boyce Avenue 90’s style piano acoustic cover) on S
ERA - Ameno
ELENA YEREVAN- Cancion Del Mariachi-IN STUDIO-2017 DPR
Dust In The Wind - Kansas (Boyce Avenue acoustic cover)
Don't Let Me Be Misunderstood
Despacito x Shape Of You - Pentatonix
Deep Purple - Child In Time - Live (1970)
David Foster When A Man Loves A WomanIt's A Mans World (SealMichael Bo
Dance me to the end of Love ( Pi-Air Design )
Coolio - Gangsta's Paradise (feat. L.V.) [Official Music Video]
Conquest Of Paradise (Vangelis), played on Böhm Emporio organ
Cielito Lindo
Chico & The Gypsies - Bamboleo
Canción Del Mariachi - Antonio Banderas, Los Lobos • Desperado
Camila Cabello - Havana (Audio) ft. Young Thug
Camila Cabello - Havana ( cover by J.Fla )
California Dreamin' - The Mamas & The Papas José Feliciano (Boyce Ave
Buster Benton - Money Is The Name of The Game
Hallelujah Pentatonix
Bobby McFerrin - Don't Worry Be Happy (Official Music Video)
Bob Dylan - Knockin' On Heaven's Door Emilia The Voice Kids France
Besame Mucho - Cesaria Evora
Ben E. King - Stand by Me Sax Cover Alexandra Ilieva Thomann
Bella Ciao
Bella Ciao - INSTRUMENTAL
Beautiful in White x Canon in D (Piano Cover by Riyandi Kusuma)
Bad Romance - Vintage 1920's Gatsby Style Lady Gaga Cover ft. Ariana Savalas & Sarah Reich(1)
BELLA CIAO 2020 - KARAOKE ITALIANO
BAMBOLEO - Gipsy Kings • Antonio Banderas, Katya Virshilas
BAILANDO (original)
Awesome Ukrainian yodeler - SOFIA SHKIDCHENKO (with English subtitles)
Avicii - The Nights
Atom - The Great Gig in the Sky
Aretha Franklin - (You Make Me Feel Like) A Natural Woman (Official Ly
Antonio Banderas - Cancion del Mariachi (Desperado)
André Rieu - Zorba's Dance (Sirtaki)
André Rieu - Can't Help Falling In Love
André Rieu & Mirusia - Ave Maria
Andrew Reyes Elton John - Don't Let The Sun Go Down The Voice 2020 (
Andreas Kümmert Whiter Shade Of Pale The Voice of Germany 2013 Showd
And I Love You So
All About That Bass - Postmodern Jukebox European Tour Version
Alan Walker - Faded (Piano Cover)
Ain't No Sunshine -- Bill Withers (cover by Canen 12 y.o.)
African music
Adriana Vidović - “Creep” Audicija 4 The Voice Hrvatska Sezona 3
Adriana Vidović - “Believer” Nokaut 3 The Voice Hrvatska Sezona 3
A Fistful of Dollars - The Danish National Symphony Orchestra and Tuva
4 Beautiful Soundtracks Relaxing Piano [10min]
2CELLOS - Whole Lotta Love vs. Beethoven 5th Symphony [OFFICIAL VIDEO]
2CELLOS - Smooth Criminal (Live at Suntory Hall, Tokyo)
2CELLOS - Smells Like Teen Spirit [Live at Sydney Opera House]
2CELLOS - Despacito [OFFICIAL VIDEO]
13 Year Old Girl Playing Il Silenzio (The Silence) - André Rieu
094.All About That Bass
00 - SADNESS PART 1
(Ghost) Riders In the Sky (American Outlaws Live at Nassau Coliseum, 1
(Everything I Do) I Do It For You - Bryan Adams (Boyce Avenue ft. Conn
What a wonderful world
Moon river
×