Wed Oct 02 15:08:15 UTC 2024: ## Macron Warns of EU’s “Existential Challenge” as Competitiveness Falters

**BERLIN** – French President Emmanuel Macron delivered a stark warning about the European Union’s future, stating that a lack of investment and excessive regulation are pushing the bloc towards uncompetitiveness. Speaking at the Berlin Global Dialogue, Macron expressed concerns that the EU is falling behind economic powerhouses like the United States and China in both output and investment.

“The EU could die,” Macron declared, emphasizing the urgency of the situation. He argued that the bloc’s current model, characterized by over-regulation and under-investment, is no longer sustainable. He stressed that if the EU continues on its current trajectory, it risks being “out of the market” within the next two to three years.

Macron’s comments echo similar concerns raised by former European Central Bank President Mario Draghi last month, who warned of an “existential challenge” for the EU. Draghi called for a radical transformation of the EU economy, including the potential issuance of joint bonds, to boost competitiveness.

Macron cited the EU’s reliance on cheap Russian energy and American security guarantees as factors contributing to its vulnerability. He emphasized the need for a fundamental shift in the EU’s economic model to adapt to a more complex and volatile global landscape.

To address the competitiveness challenge, Macron advocated for greater investment – particularly at levels not seen in over 50 years – as well as the creation of larger, more competitive European companies through cross-border mergers. He urged the EU to abandon the “27 European champions” approach and embrace the creation of true European giants capable of competing with U.S. firms.

Macron’s urgent call for action underscores the growing concern over the EU’s ability to maintain its global influence in an increasingly competitive world. Whether the bloc can heed his warnings and implement the necessary reforms remains to be seen.

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