Saudi Press

Saudi Arabia and the world
Sunday, Jun 01, 2025

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

Saudi Press
0:00
0:00
Close
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
UAE Offers Free ChatGPT Plus Subscriptions to Citizens
Lebanon Initiates Plan to Disarm Palestinian Factions
Iran and U.S. Make Limited Progress in Nuclear Talks
The Daily Debate: The Fall of the Dollar — Strategic Reset or Economic Self-Destruction?
Trump Administration's Tariff Policies and Dollar Strategy Spark Global Economic Debate
OpenAI Acquires Jony Ive’s Startup for $6.5 Billion to Build a Revolutionary “Third Core Device”
Turkey Weighs Citizens in Public as Erdoğan Launches National Slimming Campaign
Saudi-Spanish Business Forum Commences in Riyadh
Saudi Arabia and Spain Sign MoU to Boost SME Sectors
UK Suspends Trade Talks with Israel Amid Gaza Offensive
Iran and U.S. Set for Fifth Round of Nuclear Talks Amid Rising Tensions
Russia Expands Military Presence Near Finland Amid Rising Tensions
Indian Scholar Arrested in Crackdown Over Pakistan Conflict Commentary
Israel Eases Gaza Blockade Amid Internal Dispute Over Military Strategy
President Biden’s announcement of advanced prostate cancer sparked public sympathy—but behind closed doors, Democrats are in panic
A Chinese company made solar tiles that look way nicer than regular panels!
Indian jet shootdown: the all-robot legion behind China’s PL-15E missiles
The Chinese Dragon: The True Winner in the India-Pakistan Clash
Australia's Venomous Creatures Contribute to Life-Saving Antivenom Programme
The Spanish Were Right: Long Working Hours Harm Brain Function
Did Former FBI Director Call for Violence Against Trump? Instagram Post Sparks Uproar
US and UAE Partner to Develop Massive AI Data Center Complex
Apple's $95 Million Siri Settlement: Eligible Users Have Until July 2 to File Claims
US and UAE Reach Preliminary Agreement on Nvidia AI Chip Imports
President Trump and Elon Musk Welcomed by Emir of Qatar Sheikh Tamim with Cybertruck Convoy
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
Saudi Arabia Emerges as Global Tech Magnet with U.S. Backing and Trump’s Visit
This was President's departure from Saudi Arabia. The Crown Prince personally escorted him back to the airport.
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
Trump Meets Syrian President Ahmad al-Shara in Historic Encounter
Trump takes a blow torch to the neocons and interventionists while speaking to the Saudis
US and Saudi Arabia Sign Landmark Agreements Across Multiple Sectors
Why Saudi Arabia Rolled Out a Purple Carpet for Donald Trump Instead of Red
Elon Musk Joins Trump Meeting in Saudi Arabia
Trump says it would be 'stupid' not to accept gift of Qatari plane
Quantum Computing Threatens Bitcoin Security
Michael Jordan to Serve as Analyst for NBA Games
×