French President Emmanuel Macron warned that the European Union (EU) could face collapse if it fails to boost its competitiveness against the US and China, Bloomberg reports.
Macron highlighted that both Washington and Beijing surpass the EU in economic output and investment at the Berlin Global Dialogue. Macron urged the EU to quickly establish a banking union and reform global trade rules to improve competitiveness. He criticized the bloc’s outdated model, which relies on over-regulation and under-investment, and stated that Europe can no longer depend on low-cost energy from Russia or US defense support. He also called for cross-border mergers to create larger European companies that can rival US firms.
Macron echoed concerns from former European Central Bank President Mario Draghi, who recently warned that the EU must radically transform its economy and increase investment by 5% of GDP to remain competitive.
