Macron hosts BMW and Volvo execs as they think about transferring operations to the U.S.

PARIS — French President Emmanuel Macron on Monday will host a dinner with numerous European chief executives to persuade them to not transfer manufacturing to the US, the place decrease vitality costs and the Inflation Discount Act is proving a lure.

European leaders have been alarmed by huge anti-inflation measures handed by Joe Biden’s administration, which make tax breaks conditional on U.S-manufactured content material and which EU industries say make funding in Europe much less aggressive.

“We’re having difficulties with corporations that are beginning to think about offshoring their manufacturing or making future funding outdoors Europe,” a French official stated, itemizing excessive vitality prices and the U.S. laws as causes.

On the Elysee palace, Macron will search to persuade executives from corporations together with chemical teams Solvay and Air Liquide, carmakers Volvo and BMW, pharmaceutical big AstraZeneca and telecom teams Ericsson and Orange to remain in Europe and select France for his or her future investments.

Macron, who has referred to as on the European Union to launch its personal ‘European Purchase Act’ to subsidise European manufacturing, has encountered resistance from the extra anti-protectionist members of the bloc.

It was unclear what Macron would inform the executives to persuade them to not transfer to the U.S. However France has unveiled numerous measures over the weekend to cushion the affect of excessive vitality payments for French corporations.

European corporations have been more and more strident concerning the affect of hovering vitality costs since Russia’s invasion of Ukraine, which has pushed up gasoline and electrical energy costs.

Eric Trappier, CEO of Dassault Aviation, who heads the French federation of metals industries, warned within the Les Echos newspaper over the weekend that Europe ought to shield its personal trade extra aggressively or see it transfer to different shores.

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