By Euronews
Published on
French President Emmanuel Macron has warned Europe must use a common EU debt capacity to boost investment in strategic sectors or risk being “swept aside” by the US and China, ahead of an EU summit on Thursday focused on competitiveness.
Macron said Europe should brace for further clashes with the US and treat the recent “Greenland moment” as a wake-up call to push through long-delayed economic reforms, in interviews published on Tuesday in major European outlets.
The French leader cautioned that US President Donald Trump threatened to impose tariffs on European countries that opposed his bid to take control of Greenland, before backing down in Davos in January.
“We are currently in a phase I would call a ‘Greenland moment’,” Macron told the outlets.
“There are threats and intimidation. And then, suddenly, Washington backs down. And we think it’s over. But don’t believe it for a second. Every day, there are threats against pharmaceuticals, digital technology.”
Macron said the Trump administration was being “openly anti-European” and seeking the EU’s “dismemberment”.
No to eurobonds a ‘profound mistake’
“The EU is under-indebted compared with the United States and China. In a moment of a technological investment race, failing to use this borrowing capacity is a profound mistake,” Macron said.
The French leader renewed his call for common debt through eurobonds, arguing the EU needs around €1.2 trillion per year in public and private investment for green and digital technologies, defence and security.
“Now is the time to launch a common borrowing capacity for these future expenditures, future-oriented eurobonds,” he said.
The EU used joint debt in 2020 to reboot the European economy after the COVID-19 pandemic, but French attempts to make such tools permanent have faced stiff pushback from Germany and the generally frugal northern member states.
EU leaders will hold an informal retreat on Thursday at Alden Biesen Castle in Belgium to discuss strengthening the single market, reducing economic dependencies and boosting competitiveness, with Mario Draghi and Enrico Letta joining the discussions to share their perspectives.
“When there is blatant aggression, we must not bow down or try to reach a settlement,” Macron said. “We tried this strategy for months, and it’s not working. But above all, it strategically leads Europe to increase its dependence.”
Thursday’s summit will include discussions around French-led plans for a “Made in Europe” strategy that would set minimum requirements for European content in locally manufactured goods.
The approach has split EU countries and alarmed the likes of automakers and other industry leaders.
Additional sources • AFP