EU Concerned About Biden's Inflation Reduction Act

French Finance Minister Bruno Le Maire said on Monday that the United States' new Inflation Reduction Act (IRA) law was a major threat to European companies and that the EU had to stand firm against it.

"We must clearly tell our U.S. partners that it is a major problem for us. It is not acceptable. It could create a major shock on European industry," Le Maire told BFM TV.

European industries fear that the bill, which gives tax credit for each eligible component produced in a U.S. factory, would take away potential investment from the continent.

The IRA, which was signed into law in August, also provides a tax credit of 30% of the cost of new or upgraded factories that build renewable energy components.