Macron Warns EU Could Face Collapse Without Urgent Reforms

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French President Emmanuel Macron has issued a stark warning to his fellow European leaders, cautioning that the European Union "could die" if it fails to become more competitive in the face of mounting challenges from the US and China. Speaking at the Berlin Global Dialogue event, Macron pointed to the EU's over-regulation and under-investment as critical factors behind the bloc's economic struggles compared to its global rivals.

 

Macron highlighted how both Washington and Beijing have significantly outpaced the EU in terms of economic output and investment. He called on the bloc to address these deficiencies by pushing for stronger financial reforms, including the completion of its banking union package. The French president also emphasized the importance of ensuring fair global trade rules to help European businesses remain competitive. "The EU could die, we are on a verge of a very important moment," Macron said, according to Bloomberg. "Our former model is over – we are over-regulating and under-investing. In the two to three years to come, if we follow our classical agenda, we will be out of the market."

 

Macron’s remarks echo concerns outlined in a recent report by former Italian Prime Minister Mario Draghi. The report called for a comprehensive "industrial strategy for Europe," urging the EU to invest €800 billion (£673 billion) annually to prevent the bloc from falling behind the US and China. The French president’s call for increased investment and reform is part of a broader vision he has advocated for a more robust and competitive EU, particularly in areas such as defense and security. Back in April, Macron stressed the need for a more integrated European defense system, warning that the EU could not continue to rely solely on the US for its military security.

 

“We are not equipped to face the risks,” Macron said, underscoring his desire for the EU to assert itself more strongly on the global stage. He has repeatedly pushed for EU governments to increase spending on joint defense projects, as trust in the US providing Europe’s security umbrella has waned. The Draghi report also highlighted this point, urging member states to step up defense cooperation to prepare for potential security challenges in a world where the EU may not always be able to rely on its traditional allies.

 

Fears about a second Donald Trump presidency are also fueling these concerns. Some European governments are worried that if Trump were to win the upcoming US election, it could weaken NATO. The Republican candidate has made remarks suggesting he would allow Russia to act freely against any NATO member that fails to meet its defense spending targets. In 2019, Macron famously referred to NATO as "brain dead," arguing that Europe could no longer count on the US to provide security against threats such as Russia’s growing aggression.

 

Macron’s latest warning is a continuation of his efforts to push for deeper EU reforms, not just in the economic sphere but in defense and global strategy as well. His vision calls for an EU that is more self-sufficient, competitive, and better equipped to handle the challenges posed by a shifting global landscape.

 

Based on a report from Daily Telegraph 2024-10-08