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France urges swift deal on EU power reform to counter US subsidies

Energy minister says bloc will lose out to Biden’s IRA if Paris and Berlin fail to resolve differences over nuclear power

The US will be the main winner if a Franco-German divide over nuclear power prevents a long-awaited reform of Europe’s electricity market being finalised, France’s energy minister has warned. 

Agnès Pannier-Runacher said in an interview with the Financial Times that the sweeping overhaul of EU rules was needed as soon as possible to give businesses visibility on power prices, at a time when the US was luring industry with President Joe Biden’s clean energy subsidy programme under the Inflation Reduction Act.

“The aim is to have an adequate and strong answer to the [IRA] and the fact that industrial investments in the US have been multiplied by three” since the law was enacted, Pannier-Runacher said. “We have a matter of weeks to act and find a solution.”

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