Emmanuel Macron laid out his plan to make the European economy competitive again during the "Choose France" annual event.
The President of France Emmanuel Macron highlighted his vision for a revamp of the EU’s economic advantage. In his interview with Bloomberg, the French head of state concluded the annual “Choose France” business meeting, where billions in foreign investments poured into France.
Starting from France, Macron said the country struggled in the past few years but proved to be resilient to great challenges. Although the French economy stagnated, it fared better than its economic peers.
Now, Macron intends to increase the attractiveness of France and the European Union, in sharp contrast with his predecessor François Hollande. Macron wishes to make Paris the European business center, a spot currently held by London despite the UK’s departure from the EU.
To increase attractiveness, Macron pledges for more investment and innovation-friendly policies in Europe.
The four pillars of EU economic prosperity - low-cost Russian energy imports, high productivity in Central and Eastern Europe, a friendly export market in China, and the US’s security umbrella - are now put into question, Macron said. “We have to reinvent, how? By creating much more value on our own, by being much more innovative, by creating much more jobs, and jobs with value, on our continent,” he stated.
Macron also added that the European Union needs to achieve full energy independence with low-carbon energy sources. Currently, the EU produces two-thirds of its energy with renewables and nuclear.
Financial consolidation
The biggest point in Macron’s interviews is the consolidation of the EU’s banking sector. As Bloomberg Editor-in-Chief John Micklethwait pointed out, France’s biggest bank BNP Paribas is 9 times smaller than its American equivalent JPMorgan.
That is because European banks can virtually only operate in separate EU member states, each with its own rules and regulations.
When asked if he would approve of a cross-border acquisition of a major French bank, Macron said “Dealing as Europeans means you need consolidation as Europeans”.
Having a consolidated EU banking sector would entail focused investment in key strategic sectors, including technological research and innovation. It would also make non-European investors consider the bloc as a single economic entity, dealing with a pan-European financial institution instead of 27 separate ones.
Regulations prevent European banks from investing in equity, and therefore are a “killer to risk-taking,” Macron added. This means that while American banks can fuel innovation and growth through financial risk, their European equivalents are forced to lag behind.
Finally, Macron pointed out that China and the United States protect their domestic firms and investments. Europe should do the same, realizing that a market too open to foreign competitors could spell its end.
