French president: EU has 2-3 years to avoid US, China dominance

French President Emmanuel Macron expressed grave concerns about the European Union's competitive standing against the United States and China, stating that the EU has only two to three years to adapt or risk falling behind.

Speaking at the Berlin Global Dialogue meeting, he remarked that the EU's traditional approach of overregulation coupled with underinvestment is no longer viable, emphasizing that Europe is at a critical juncture, Caliber.Az reports per foreign media.

Macron noted that Europe is trailing in essential areas such as climate change, artificial intelligence, defence, and security. He echoed sentiments from former European Central Bank President Mario Draghi, who warned in a September report that the EU must undergo significant economic transformation to remain competitive.

Macron highlighted that over the past thirty years, while the US GDP per capita increased by 60 per cent, Europe's growth was only 30 per cent, which he described as unsustainable within the current social model.

To enhance competitiveness in a multipolar global landscape, Macron called for deeper integration of the single market and simplification of regulations. He stressed the need for a "simplification shock" to revitalize Europe’s economy.

Addressing trade relations, Macron criticized the lack of adherence to World Trade Organization (WTO) rules by both the US and China, suggesting that the EU should reconsider its compliance if these countries do not uphold their commitments.

He reflected on the misconception that China's accession to the WTO would lead to compliance with international regulations, stating that this has not occurred. He also pointed to recent US decisions to ignore WTO rules.

While he does not advocate for protectionism, Macron argued for fairness in trade practices to protect European industries and farmers. He urged the EU to take a more assertive stance in the global market to ensure a level playing field.