French President Emmanuel Macron has warned that “the EU could die” in the coming years unless it changes its economic model.
Speaking at a Berlin Global Dialogue event this week, Macron warned that the EU was over-regulating and under-investing to its own detriment. He went on to point out that both China and the USA were outcompeting the EU economically and at risk of becoming globally dominant.
“Our former model is over,” he said, as reported by Politico.
“We are overregulating and underinvesting. In the two to three years to come, if we follow our classical agenda, we will be out of the market.”
He pessimistically added: “The EU could die – we are on a verge of a very important moment.”
The French president went on to assert that Europe is falling behind America and China on issues such as AI, defense and security.
Notably, former European Central Bank President Mario Draghi made similar observations in a report published last month, wherein he claimed that the EU faces an “existential challenge” unless it substantially transforms its economy to become more competitive.
Macron said he fully concurs with Draghi’s claims, and that Europe should implement them quickly.
“I think this is quite true, we are at risk,” he said.
“[The US and China] invest much more, they are much more in advance.”
He pointed out that over the past three decades, the United States achieved a 60% rise in gross GDP per capita, while Europe managed only a 30% rise.
“It’s not sustainable with the social model that we have,” he said.