A senior member of France’s government thinks the EU should consider implementing a U.S.-style system that only offers EV subsidies to vehicles made within the European Union.
French Finance Minister Bruno Le Maire told reporters that the EU needed to act to protect its automotive companies and the people employed by it, Bloomberg reports.
“[It might be] time to reserve electric vehicle bonuses either for cars produced on European territory or for vehicles that strictly and rigorously meet new environmental standards,” Le Maire told reporters. “We need to play with the same rules if we want to defend our industries, our jobs and our technology.”
Related: China Could Retaliate Against America’s “Discriminatory” EV Tax Credits
The U.S. government’s newly passed Inflation Reduction Act provided a major shake-up to America’s EV tax credit system, removing the production cap, but requiring cars and important components including battery parts to be made locally to qualify for the full $7,500 subsidy.
“I think it’s time we start to think about this idea in Europe,” Le Maire said, according to Bloomberg, which highlights that EVs represented 12 percent of new car sales in France in the first seven months of 2022.
Although the UK recently axed its EV subsidy program, some other European countries in the region still offer generous incentives to buyers of electric vehicles. French buyers can access grants of up to €6,000 ($5,800) when buying EVs priced at less than €47,000 ($45,000). The subsidy will fall to €5,000 ($4,800), but still represents a considerable saving and under the current rules is available to buyers of electric vehicles made outside of the EU.
Do you think each region should apply a U.S.-style protectionist system to its EV subsidies to protect its own industry and jobs, or is it unfair for consumers?