What did Macron achieve in Washington?
During the French President's state visit to the US, Joe Biden and Emmanuel Macron demonstrated unity and assured Ukraine of their joint support. Immediately before the meeting Macron had described the US subsidies for American producers of environmentally friendly technologies as "super aggressive". Commentators fear a new trade dispute in which Europe will be at a disadvantage.
At least one concession
Macron's visit to Joe Biden was important to prevent a new trade dispute with the US, says Dnevnik:
“Macron failed to convince Biden to give up the subsidies in the spirit of transatlantic unity, which is also necessary for continued support of Ukraine. However, they did agree that US legislation would be amended so that it would not be directed against Europeans. To maintain transatlantic unity on Putin, Biden made a concession yesterday. How weighty this will be will be decided by American and European negotiators.”
Biden's priorities are clear
Despite his brash tone Macron is no doubt aware that an open dispute with the US would be the worst possible scenario at the moment, comments Handelsblatt:
“After all, Europe is currently once again experiencing how much its security depends on its big brother on the other side of the Atlantic. The Americans are aware of the precarious situation of the Europeans - which is why they will hardly be willing to make concessions in the subsidy dispute. At most, they could agree to a delay so that European companies can move their supply chains to the US in an orderly manner is possible. Biden's priorities are clear: first domestic policy, second China, and then perhaps Europe far behind.”
Buy European Act would not stand a chance
Europe's internal division prevents a united stance on the issue, Les Echos concludes:
“If you look at energy prices, there is no doubt that Europe is paying a high price for the war in Ukraine. There is also no doubt that the (obvious) American protectionism and the massive subsidies for the establishment of factories will have severe consequences for Europe. ... It would be pointless to start a trade war and involve the WTO. ... Reacting with a Buy European Act would be more logical, but the Germans are divided and there is no chance that Poland, which is under American protection, will take this risk.”
Prevent a subsidy race
De Morgen warns against the return of protectionism:
“Government billions that have to be spent on a subsidies race cannot be used for other more valuable social goals. ... In the search for gas, it has already become apparent that poorer countries were losing out in trying to compete with what the the West has to offer. The same could happen if the EU follows the US example and closes off its own market to imports. The economic price will then be paid by countries that are forced out of the subsidy race. With serious consequences for stability and prosperity across the globe.”