In the face of competition from the United States and China, Emmanuel Macron is calling for “joint investment.” In an interview with several European newspapers, the French President invited his European counterparts to invest in the ecological transition, artificial intelligence, and quantum computing to avoid being left behind.
A Call for Sovereignty and Shared Debt
”For nine years, I have advocated for a more sovereign Europe,” Macron stated this Tuesday, February 10, just two days before a meeting of EU heads of state and government in Brussels. The President believes that trade threats and “intimidation” from the United States are not over. He warned that the twenty-seven member states will be “swept away” if they do not establish a European preference in strategic sectors.
To cement European power, Macron is pushing for a common debt capacity to fund future expenditures (Eurobonds). This joint borrowing would finance strategic investments and allow the European Union to “tackle the hegemony of the dollar.”
Three Key Battles
Macron identified three critical areas where Europe must act within the next three to five years to remain relevant:
Security and Defense
Green Transition Technologies
Artificial Intelligence and Quantum Computing
“In all these areas, we invest much less than China and the United States,” Macron explained. He estimates the required public and private investment at approximately €1.2 trillion per year. He emphasized that these efforts must be collective rather than national to avoid fragmenting the internal market.
Consistent Protection, Not Isolationism
Regarding protectionism, Macron clarified that the goal is consistency rather than isolation. “The Chinese do it, the Americans do it too. Europe is currently the most open market in the world.” He argued that it is illogical to impose strict rules on European producers that do not apply to non-European importers.
He cited several examples of this new direction:
- Opposing the EU-Mercosur trade agreement, which he labeled a “bad deal.”
- Implementing taxes on over-subsidized Chinese electric vehicles.
- Introducing safeguard clauses on steel.
- The recently presented “Car Plan” by the Commission, which features a clear European preference.
Macron is right, but has no more leverage given the French domestic issues and presidential elections next year. He has been saying this since the start of his presidency and for that, I give him much credit.