Les Échos , the 18th of February 2025
We are at a real turning point in the history of Europe. In this changing world, which has turned its back on multilateralism and today faces the pure and simple return to the balance of power between nations, one of two things will happen: either Europe pulls itself together economically, politically, diplomatically and militarily, or Europe that is half-asleep continues its decline and gradually disappears from history.
But getting its act together will not be easy. If Europe has clean hands today, it is heading towards having no hands at all. Let us put an end to our inability to be bold and innovative on our aging continent, due to the constant desire to regulate and standardise before inventing, creating and developing. Furthermore, to force the rest of the world to follow our standards is naive; we have neither the economic nor the diplomatic power to impose them on others.
Let us stop thinking of ourselves in Europe as the camp of the self-righteous, by developing for ourselves at every turn finicky regulations where the letter ends up prevailing over the spirit. They end up hindering our companies, with endless bureaucracy. These are worthwhile goals, but the never-ending red tape needlessly damages our competitiveness.
Let us do away with our naivety in wanting to be continuously top of the class on climate, when this leads directly to the detriment of our industries and de facto favours populism which has a strong climate skepticism. Let us instead seek to best combine the health of the planet and growth, by investing massively in the industries of the future – where we have no presence – including in the climate transition industries – where we are so weak.
Let us also leave behind our naivety when it comes to energy, where yesterday we were subjugated to Russia, and tomorrow to the United States. It is essential for our global competitiveness. Currently we are on average paying at least five times more than the Americans for the price of natural gas.
Let us think that the single financial market would be highly desirable, but that it would not produce the expected effect on its own. The surplus of European savings will spontaneously finance more investments in Europe – only if we establish an explicit framework of financial solidarity within the euro zone. For this, the public finances of France, among other countries, must finally be credible. Risk sharing versus market discipline, right? We also need a European capacity to facilitate the development of our newly created companies to make them global giants. And thus provide attractive returns.
The multiple non-financial barriers to doing so are crippling.
Europe no longer knows how to correctly combine the principle of ethics and that of efficiency. Ethics alone, constructed as an absolute end, to the detriment of efficiency, is only a short lived illusion that we create for ourselves. The reverse is also true. But today, multifaceted, quasi-dogmatic formal ethics has ideologically taken too much precedence over its indispensable partner and unduly hinders it. It is the right balance between regulation and free play of the market that we must aim for. One that enables the dynamics of the economy while seeking the necessary protection against its potential excesses.
Europe has been, and can once again become, the place on earth that best combines these two principles. This has made our social market economy model so strong. It is up to pro-European democratic forces to vigorously regain the vitality and balance they need. Before others impose a brutal paradigm shift on us.
It is only through this renewed vitality that Europe will be able to continue to chart its course and control its destiny. This is an urgent matter.