We are seeing the normalization of conflicts around the world, French President Emmanuel Macron warned. In a speech at the World Economic Forum in Davos, Switzerland, he noted that last year alone saw the outbreak of approximately 60 armed conflicts around the world and that the world is "turning away from multilateralism."
"We are witnessing the demise of the multilateral world and the advent of bloc politics," warned the head of the Élysée Palace, mentioning in particular the US and its tariff policy and desire for Greenland, Russia and its war in Ukraine, and China and its extensive export controls, "which seriously threaten global trade."
"I am concerned that this world is moving towards a world without rules," Macron said. However, he acknowledged that while Beijing is reducing the consumption component of GDP and inflating investment, the European Union is lagging behind in competitiveness and failing to attract foreign investment.
He also proposed a certain degree of European protectionism, as he believes that the EU is "the only one that plays by the same rules" in international trade. Brussels should therefore not pursue "protectionism," but at least protect its own "chemical and automotive industries, because they are literally being killed by those who do not respect the rules of the game."
China subsidizes its exports much more, which ultimately lowers its market price in Europe at the expense of European production, he added, noting that Europe lags behind in subsidizing its own industry.
He also admitted that the unification of the European market is not in the home stretch and that the varying degrees of internal protection of nation states add "complexity" to the system, he added euphemistically. However, Macron expects competitiveness to result from the "deepening of the single European market" as a domestic market for all companies in the EU.
There is a large disparity in GDP per capita between the EU and the US, Macron pointed out, adding that up to 60 percent of this difference is due to innovation, supported by public and private investment. "We have more savings than the US. Nevertheless, we are at a disadvantage," said the French leader, adding that European industry lacks private investment.
He also praised his country for its massive investments in the civil nuclear energy sector and extensive construction of power plants. According to Macron, Paris is thus preparing for a complete transition to green energy, which, for understandable reasons, also includes nuclear power.
He described Davos as the "epicenter of the old continent," where the leaders present must decide on all the steps mentioned, including the unification of the capital market.
"If you are more on the side of science than polytheism, if you are more on the side of the rule of law than the rule of brutality, then you are more than welcome in Europe and specifically in France," he concluded.
In the ensuing discussion on the topic of "capital markets union," he was supported by his colleague and moderator Larry Fink, vice chairman of the WEF and director of BlackRock, the world's largest investment fund.
Macron did not take off his sunglasses during his speech or during the discussion.
He also continued his criticism of tariffs, indirectly touching on the looming trade war between the "shores of the Atlantic." "In the case of the US, this may be the first time we use a counter-pressure instrument. How crazy is that?" added the president, noting that the Union has not used this tool even against China, let alone against a country it considers an ally.
US Treasury Secretary Scott Bessent responded to Macron's comments and those of Danish Prime Minister Mette Frederiksen on the subject of Greenland. "I say to everyone: Lean back. Take a deep breath. Don't retaliate," he said, trying to calm the audience in Davos. "The president will be here tomorrow [Wednesday] and will deliver his message to you himself."
"Let's not allow ourselves to be divided and let's not allow the rise of a new imperialism and a new colonialism," Macron concluded the discussion.
The president, who has been in office at the Élysée Palace since 2017 and is ending his second term,warned in November 2019 that the North Atlantic Treaty Organization (NATO) "is brain dead" and called for the goal of his predecessor Charles De Gaulle to establish a common European defense. After six years in front of an audience in Davos, he warned that Europe would be left alone.
(wef, reuters, sab)