A war of words has erupted between French President Emmanuel Macron and tech billionaire Elon Musk, highlighting a deepening divide over how governments should support their industries.
Speaking at a major industrial summit in Antwerp, Belgium, on Wednesday, Macron used the American entrepreneur as a prime example of why Europe needs to change its economic strategy. The French leader argued that the United States has successfully used public money to build private giants, specifically pointing to Musk's satellite internet company, Starlink.
During the high-profile meeting, Macrondid not hold back. He told the audience that while people are 'fascinated' by Musk's achievements, they must also be realistic about how he achieved them. 'If you are lucid, Mr Musk is probably one of the guys of the world who has had in his pockets the most... billions of dollars of the American taxpayers in order to be subsidised,' Macron said. He went on to label Musk as an 'oversubsidised guy', thanks to support from federal agencies in the US.
The President used this claim to push for a 'Buy European' approach. He believes theEuropean Unionshould take on joint debt—borrowing money together as a bloc—to fund massive investments in local industries. According to Macron, this is the 'only way' for Europe to compete with rivals like the United States andChina, who are heavily funding their own businesses.
If you add up all the government funding Tesla and SpaceX have ever received, it is only about 1% of the combined value of the companies.In contrast, if you do that with US and European major aerospace companies, the government money they have received *exceeds* 100% of their…
Elon Musk, never one to stay silent, quickly responded on his social media platform, X. He firmly rejected the idea that his companies are propped up by the government. 'If you add up all the government funding Tesla and SpaceX have ever received, it is only about one per cent of the combined value of the companies,' Musk wrote.
He then turned the accusation back on Europe. Musk claimed that major European aerospace companies are the ones relying on state aid. 'In contrast, if you do that with US and European major aerospace companies, the government money they have receivedexceeds100 per cent of their value!' he argued. This sharp exchange underlines the tension between US and European economic models.
The clash between Macron and Musk happened against the backdrop of a critical gathering in Antwerp. Europe's political heavyweights, including German Chancellor Friedrich Merz, Belgian Prime Minister Bart De Wever, and European Commission President Ursula von der Leyen, met with top industrial leaders. The goal was to prepare for a formal competitiveness summit later this week.
The atmosphere at the meeting was serious. European companies are struggling with high energy costs, trade tariffs, and fierce competition from China. The balance of power is shifting, and industry leaders are demanding that politicians take action to stop the continent's factories from closing down.
Ursula von der Leyen used the summit to outline her plan for a simpler business environment. She highlighted a major problem known as 'gold plating'. This happens when individual member states add their own national rules on top of existing EU laws. This creates extra layers of regulation that make it expensive and confusing to do business across borders.
Source: International Business Times UK
