the appeal of Emmanuel Macron and Mario Draghi for a revival of Europe

by time news

Will Donald ‍Trump’s ‌resounding election be the shock Europe⁢ and its economy have‍ been waiting for?‍ This question was the basis⁣ of the debates‍ on the‍ competitiveness of the Old ⁣Continent, on⁤ Wednesday 13 November, at the​ Collège de France, and in⁤ particular ​the⁤ final debate in which Emmanuel ‌Macron and Mario Draghi took ‌part.

The former president of the European Central⁢ Bank, author ⁢of a⁣ recent report aimed ⁤at stopping ‌Europe’s‍ disconnection from the United States and ‌China, believes in the urgent‌ need‌ to “we are together” in​ the face of the announced hardening ​of American⁢ politics, including the⁤ more systematic use of ​qualified ⁢majority‍ decisions within the Twenty-Seven.

“We must protect our market”

Also for Emmanuel Macron,⁤ the victory ⁣of the Republican candidate risks‌ widening a technological and economic gap⁤ that had begun ​to widen at the⁢ turn of the⁣ nineties and which ‍was aggravated, under the Biden administration,⁣ by the IRA (Inflation Reduction Act). “one of the most protectionist packages we have⁣ seen for ‍green technology”. According to the Head ​of State, we⁣ must expect the ⁤continuation⁢ of ‍a ⁣policy on the other ⁢side of the Atlantic «pro-innovation»to deregulation⁣ “uninhibited”ha ‍ “a ⁣tariff tension that ​will be higher”.

Specifically, Emmanuel ​Macron deplores a form of European naivety: “We have to ⁤protect our market. This is not⁣ protectionism, but ⁤when ⁤we have economies like ⁤China which, for ten years, has oversubsidized certain‍ segments ⁤of its economy and ⁤dumped its excess capacity on our ​continent, (it’s about) restore​ the rules⁢ of ‌fair​ competition.⁣ »⁣ And the​ President of the Republic is happy that Europeans are starting to do so “take it on”as demonstrated by the introduction of surcharges on Chinese ​vehicles.

Develop targeted industrial policies

To take on Trump-era‌ America ‍as well ‌as China that has also done so “has decided to no longer respect WTO rules”Europeans‌ must remain united, insists Emmanuel Macron,​ and⁢ exert the full weight of​ their 430 million inhabitants. “Europe’s strength is its single ⁣market. »

A market which⁢ in the future, he claims, will have to fully integrate sectors such as telecommunications or energy, to encourage⁢ the emergence of champions at a continental level. A market that must ⁣also include that of capital so ​that the savings of Europeans, two-three times‍ higher than those of ⁤Americans, are ⁤invested ‌more ⁣massively in ​innovative projects and research in the sectors in which the global technological battle is being fought.

The President‌ of the Republic believes that Europe⁤ must assume responsibility for the implementation of industrial policies ​without relying⁢ exclusively on market forces.⁤ It has done so in the ​hydrogen, electric batteries ​or ⁢semiconductor sectors,⁢ through⁢ important projects of common European interest (PIIEC). He will have⁣ to‌ do it in other areas ⁢too, ⁣without ‍hesitation.

One or two European ⁢champions per sector

“We want to say that we ‍want one or two European‌ champions, for example in the quantum ‍sector ‍or in artificial intelligence, for ⁤example in cyber, cites as an example. There ⁣is a European‍ agency that ​selects ⁢ten projects independently with the best academic experts. We start from ⁢the assumption that perhaps there will be a significant attrition rate and ⁢that there will be a ⁣champion who will survive and who will be⁤ a great European champion. And maybe it will be in Poland, and it will ⁣not ⁣be ‌serious for France⁣ and Germany. »

And Emmanuel Macron judges⁢ the current European ​model obsolete: “We build rockets –​ it’s the same thing for missiles – by passing ‌the components six to ten times across the border to make sure that there ⁣are many hours of work in Spain, many hours in⁢ Germany, ⁤many hours in France…⁢ When on the other On the ‌other hand, you have someone who tells ‍you: “I’m revolutionizing all the production models and where factories in four different locations were ⁢needed, I’ll do it in a garage”, he‍ said, broadly summing ⁣up Elon Musk’s approach.

The risk of⁤ division

For Emmanuel ​Macron, ‌as for Mario ‌Draghi, there is urgency. “We can no longer take nineteen months to pass legislation. ​And we shouldn’t have laws‍ for everything,” pleads the ⁣one who was also Prime Minister in Italy. If a result is⁣ not reached within eighteen months, warns Emmanuel ‍Macron,⁣ the⁤ risk ⁤of seeing some‍ European states negotiate bilaterally with Washington ⁤or Beijing is great.

Many arguments to accelerate ⁣the possible implementation of the​ recommendations‌ of the Draghi‌ report, which⁣ also envisages‌ making decarbonisation a source of growth. However, with the need to inject ⁤800 billion euros⁣ per year. The former ‌head of the ECB and the⁤ French president agree: it is a sustainable effort provided that it is shared halfway between public and private.

Interview: The Future of Europe’s Economy Post-Trump: Insights from an Expert

Time.news Editor (T.N.E.): ⁢ Welcome, Dr. Elena​ Richter, an esteemed economist ⁣and ⁣expert ‌on‍ European ‌economic​ policy. Thank you for ⁣joining us today to discuss the implications of a potential Donald Trump victory ⁢on Europe’s economy.

Dr. Elena ‍Richter (D.E.R.): Thank you for⁢ having me!​ It’s a pleasure to be here.

T.N.E.: ⁣Let’s‍ dive right in. The⁣ recent⁣ debate⁤ at the Collège de France featured significant ⁢voices, including Emmanuel Macron⁣ and Mario Draghi, discussing Europe’s competitiveness in light ⁢of a ⁤Trump⁢ presidency. How ​do⁢ you⁣ believe a‍ Trump victory could change the ⁤dynamics between Europe⁢ and the⁢ U.S.?

D.E.R.: A Trump victory would likely exacerbate existing tensions, particularly in​ trade and technology. Macron’s⁤ warning about the widening technological and economic ⁣gap ⁣is crucial. ​A ⁤more protectionist U.S. policy, similar ⁢to the Inflation Reduction Act, could lead‌ Europe to rethink its strategies for⁣ competitiveness,​ especially in green ⁢technologies.

T.N.E.: Macron emphasized the ‌idea of “protecting our market.”​ Can‍ you elaborate on what he means when he says that this ‍isn’t ​about​ protectionism, ‌but⁣ restoring⁢ fair competition?

D.E.R.: Absolutely. Macron is pointing to an essential reality: Many ⁢economies, particularly China’s,⁣ have‍ engaged in ‌practices like‍ over-subsidization and ‌dumping. In this ⁤context, safeguarding Europe’s market becomes vital⁤ for ensuring ⁤fair ⁣competition. It’s about‍ establishing rules⁣ that prevent unfair advantages in global markets,‌ and it’s a strategy‍ aimed not only at protecting European interests but​ also at fostering‍ a healthier competitive environment.

T.N.E.: The ​conversation around industrial policy is also coming ​into play. Macron argues that Europe cannot depend ‍solely on market forces. What⁣ kind ⁣of industrial policies ⁤should Europe implement to enhance its competitiveness?

D.E.R.: Macron’s call for targeted industrial policies is about ⁢strategic investment in ‍key sectors ​such as hydrogen, electric ‍batteries, ‍and semiconductors. Europe needs to embrace a more active ​role in shaping‌ its ​economic landscape,⁣ promoting innovation through coordinated efforts‌ rather ​than leaving it entirely to ​market actors. This could involve public-private partnerships and substantial funding for⁣ research ⁤and development ⁣in critical areas.

T.N.E.: You mentioned the necessity of ⁣creating “one ⁤or ​two European champions” in emerging fields⁢ like quantum ⁣computing and artificial intelligence.​ How feasible ⁣is that goal?

D.E.R.: ⁤It’s a challenging but⁢ necessary goal. Europe⁢ has⁤ the​ talent ​and‌ resources to become a leader in⁤ these fields, yet it requires ​a ‌unified approach and significant investment. The establishment of selection bodies, as proposed by Macron, ‌to foster promising⁢ projects is a crucial step.⁣ It’s about prioritizing the right initiatives and⁤ allocating funds effectively to ensure⁢ that⁣ these ⁢emerging champions‌ can​ compete globally.

T.N.E.: ⁤ Macron also ⁣pointed out the importance of ​integrating ‍sectors⁣ like telecommunications and⁤ energy.⁢ Why is this integration essential ⁤for Europe’s​ competitive future?

D.E.R.: Integration is​ vital as it can lead to economies ​of scale and improved efficiency. A ​unified approach ‍in telecommunications and energy, for instance,⁤ will not​ only empower European companies​ to‍ compete ⁤on a larger scale but also ensure that technological advancements benefit the entire⁣ continent. Moreover, it can ⁤foster ⁣innovation and collaboration, ​ultimately creating a more ⁤robust⁢ economic landscape.

T.N.E.: As we look ahead, what ⁤steps should Europe‌ take now to prepare for possible changes under a Trump⁤ administration?

D.E.R.: ​Europe⁣ must rally its 430 million inhabitants around a common⁤ vision and shared goals. It’s ⁣essential to boost⁤ investment in research and development, strengthen protections against unfair competition,⁤ and pursue strategic collaborations across member states. By presenting a united ⁤front,⁢ Europe can better⁢ navigate the complexities of the international landscape, regardless of who occupies the White House.

T.N.E.: Thank you, ​Dr. Richter. Your insights on these⁤ critical issues‌ are invaluable⁢ as Europe navigates this uncertain yet pivotal time ⁢in its ⁤economic journey.

D.E.R.: ‌ Thank you for having me! It was a pleasure to share my thoughts.

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