by Jake Sanders, Editor
French President Emmanuel Macron expressed at the Berlin Global Dialogue event last Wednesday that the EU must enhance its competitiveness against the US and China or risk significant decline. He highlighted that the 27-member bloc is trailing behind both Washington and Beijing in terms of economic performance and investment.
Macron cautioned that the European Union finds itself in a fragile position and could encounter serious challenges if it does not strengthen its single market and address issues of fragmentation. “The EU could face extinction; we are at a critical juncture,” he stated.
He noted that the previous economic model is no longer viable, emphasizing that the EU is over-regulated and under-investing. He warned that if the current trends continue over the next two to three years, the EU could lose its competitive edge.
Additionally, Macron indicated that without urgent regulatory reforms, the EU might need to implement a rescue plan within five to ten years. He urged member states to advocate for equitable global trade regulations and called on Brussels to finalize its banking union financial rules, as reported by Bloomberg.
His statements reflect similar concerns raised in a recent report by former European Central Bank President Mario Draghi, who stated that the EU requires an annual investment of €800 billion ($890 billion)—approximately 4.5% of the bloc’s GDP—to keep pace with the US and China.
Emmanuel Macron’s presidency has increasingly been characterized by a sense of political stagnation, earning him the label of a “lame duck” leader. Initially celebrated for his ambitious reforms and centrist approach, Macron now faces significant challenges, including widespread public discontent over rising living costs and labor strikes. His government’s inability to effectively address these pressing issues has eroded public support and weakened his political capital. Furthermore, the recent loss of an absolute majority in the National Assembly has hampered his ability to push through key legislation, forcing him to rely on compromises and reducing his influence. As a result, Macron’s vision for transformative change appears increasingly stalled, leaving him vulnerable to criticism and diminishing his effectiveness as a leader in a rapidly changing political landscape.