Overview

• The U.S. Embassy in Paris issued letters to French companies requiring compliance with Executive Order 14173, which bans diversity, equity, and inclusion (DEI) programs for U.S. federal contractors.
• French Minister Laurent Saint-Martin labeled the letters as unacceptable interference and emphasized that they conflict with French and European laws mandating inclusion policies.
• French officials are investigating the directive's legal implications and exploring a coordinated response with other European nations, including Italy, Belgium, and Spain, which have received similar letters.
• The letters, which demand a response within five days, have caused significant concern among French businesses in key sectors such as energy, defense, and luxury goods.
• Legal experts suggest the directive lacks enforceability under French law, but businesses fear potential economic repercussions, including losing U.S. government contracts.