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Speaker 1: In France, catsmin Field, very good morning to you. Good

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Speaker 1: morning my Paris Motor Show. I always follow the Paris

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Speaker 1: Motor Show with a great deal of interest. Is it

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Speaker 1: for soon this year? With a lot of byds and

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Speaker 1: Chinese half price evs.

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Speaker 2: It is a very tense Paris Motor Show this year,

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Speaker 2: of course, Europe's biggest motor show. The reason that it

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Speaker 2: really is tense is because you've got those two sides

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Speaker 2: coming together.

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Speaker 3: Mine you've got the Chinese, who.

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Speaker 2: Are to get more of their vehicles on sale in Europe.

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Speaker 2: If they've got something like five Chinese brands out there

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Speaker 2: at the Paris Motor Show just showing off what they've got.

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Speaker 2: On the other side, you've got the Europeans, the French,

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Speaker 2: the Germans. Their industry is absolutely struggling, and of course

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Speaker 2: the EU has just come up with a forty five

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Speaker 2: percent tariff on Chinese electric cars.

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Speaker 3: So Chinese aren't happy about this.

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Speaker 2: Not to not to put it too mildly, these tariffs,

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Speaker 2: you know, they say the Europeans are saying, look, you know,

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Speaker 2: we just have to compete. The Chinese are subsidizing their industry,

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Speaker 2: not so we're going to put a tariff on that

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Speaker 2: covers that amount of money that the Chinese government is

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Speaker 2: putting in so as we can compete.

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Speaker 3: On an even basis.

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Speaker 2: Well, what they're saying now is that what will happen

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Speaker 2: is these terraffs will lead Chinese companies to come and

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Speaker 2: set up their plants in Europe, add to the over capacity,

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Speaker 2: and local manufacturers could also be forced out.

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Speaker 3: Out of business completely.

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Speaker 2: So there's also comes Mike, don't forget just the time

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Speaker 2: when the Chinese have retaliated. They've put that new tariff

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Speaker 2: on imports of Cognac into China. So it's a time

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Speaker 2: when everyone's kind of jostling around. It's not making for

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Speaker 2: a pleasant motor show. And there's more to come, Mike

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Speaker 2: here because cars aren't selling well in Europe at the moment,

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Speaker 2: new car sales still well below that pre COVID level.

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Speaker 2: And as well, you know they're looking at China because

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Speaker 2: China has been flooding the market here with solar panels,

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Speaker 2: heat pumps, wooden turbines, and essentially the consumers having a

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Speaker 2: bit of a hard time and thinking that the government

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Speaker 2: really should have been setting up its own sort of

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Speaker 2: solar panel factories and heat pump factories and not leaving

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Speaker 2: it to get to the stage that it's at now.

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Speaker 1: If I still on Chaucalisa, how many Chinese evs would

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Speaker 1: I see on any given day?

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Speaker 3: You know, you'd start to see quite a bit. They've

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Speaker 3: got you.

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Speaker 2: I don't know what it is.

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Speaker 3: It's between five and ten percent of the market.

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Speaker 2: So you essentially see Tesla some Chinese cars around.

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Speaker 3: What you will see a lot of Mike.

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Speaker 2: Though, are hybrids, petrol battery hybrids, and they're you know,

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Speaker 2: but the French just came to that way too late.

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Speaker 2: They've got Toyota making cars here, but this is so

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Speaker 2: new and they came to the party way too late.

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Speaker 1: But when you talk about hybrids, are you talking about

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Speaker 1: plug and hybrids? And I want to bore people with

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Speaker 1: the technology, but I mean, if you're talking about plug

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Speaker 1: and hybrids, does France have an electric charging infrastructure that

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Speaker 1: you would be confident of finding a part to plug

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Speaker 1: your Caaren while you go shopping?

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Speaker 2: Yeah you do, now you do notice it, but not

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Speaker 2: a lot of people. It's still got the range. Let's

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Speaker 2: not forget France is a big country. It's huge, so

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Speaker 2: if you want to plug in your car, you really

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Speaker 2: want to get more than sort of two hundred kilometers

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Speaker 2: range before you plug into an electric service station, which

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Speaker 2: there are on the motorways, and they do have fast charging,

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Speaker 2: but it's really not the sort of driving touring that

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Speaker 2: the French history is getting in the car, driving a

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Speaker 2: long distance and being at the beach or the mountains

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Speaker 2: or whatever. And of course you're getting these bigger cars

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Speaker 2: that you need a lot of juice in them, and

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Speaker 2: then you don't go very far.

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Speaker 1: No, exactly. Now, the report I read last week when

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Speaker 1: the budget came out was the beleagued government One would

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Speaker 1: you describe your government as beleagued?

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Speaker 2: And too?

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Speaker 1: How did the budget go down?

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Speaker 3: It is very beleagued.

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Speaker 2: Really, this budget has come at a bad time for

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Speaker 2: this new prime minister Vagnier.

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Speaker 3: Yeah, it's all bad news, Mike. There is.

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Speaker 2: The deficit is around six percent of GDP, where the

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Speaker 2: President had promised it would be four point four percent

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Speaker 2: this year.

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Speaker 3: You know, it really isn't that isn't good.

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Speaker 2: They need to get it down to about three percent

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Speaker 2: for to go in with the EU.

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Speaker 3: So they've come up with this with this budget. I mean,

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Speaker 3: the sums are just astounding.

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Speaker 2: They need to make about seventy three billion New Zealand

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Speaker 2: dollars in spending cuts, and they need to bring in

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Speaker 2: about sixty billion New Zealand dollars in new taxes, which

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Speaker 2: they say they'll get from large companies and wealthy homeowners.

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Speaker 2: They're knocking about seven billion New Zealand.

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Speaker 3: Dollars off the healthcare budget.

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Speaker 2: They're delaying inflation adaptation for pensions for a year, and

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Speaker 2: he's got to.

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Speaker 3: Get that through Parliament. It's now in the Finance Committee.

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Speaker 3: It's only been there for a few days. Yes, it

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Speaker 3: is bad.

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Speaker 2: France shouldn't have the stat but it hasn't balanced its

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Speaker 2: budget like.

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Speaker 3: For about fifty years.

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Speaker 2: But like all other countries who the headwinds that it's

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Speaker 2: got are really bad. You've got troubling international situation, you

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Speaker 2: don't know how the market's going to react. You've got

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Speaker 2: widening deficits, and you've got what later this month's Moodies

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Speaker 2: is going to give its credit rating on France and

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Speaker 2: next month S and P so borrowing could get even

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Speaker 2: more expensive for the French treasury.

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Speaker 1: Soun's a fun time. Good to catch up, Katherine, appreciate

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Speaker 1: it very much. Katherine Field out of France this morning,

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Speaker 1: just quickly Tusk and Poland announced over the weekend temporarily

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Speaker 1: suspending the right to asylum as part of a new

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Speaker 1: migration strategy to compact what he calls irregular migration, so

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Speaker 1: that despite the end of some of that particular problem

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Speaker 1: continues in Europe.

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Speaker 2: For more from The mic Asking Breakfast, listen live to

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