“A new cathedral”: this is how Emmanuel Macron described, late Thursday afternoon, the new regulatory structure on which the Twenty-Seven agreed to, in particular, mobilize the savings of Europeans and direct it towards innovation.
The heads of state and government are calling for a “New Competitiveness Deal” capable of restoring the competitiveness of the European economy, and in particular of its industry, which must deal with the lowest labor and energy costs. highest in the world.
Currently, it is estimated that around 300 billion euros from Europe will finance innovation in the United States each year, where investors find clearer rules and more sophisticated financing mechanisms.
Ministerial blockages
Former Italian Prime Minister Enrico Letta presented leaders with a report demonstrating the need to deepen the single market and on Tuesday former ECB President Mario Draghi delivered an alarmist speech on the threat of decline rapid growth of the continent’s economy.
While the need for a union of capital markets (harmonization of the supervision of systemic institutional investors, predictability of bankruptcy law, convergence of the taxation of savings products) had been a consensus for a long time, but without progress, the discussions of this Thursday finally form a breakthrough.
Misunderstandings cleared
It was necessary to reach the level of heads of state and government to overcome the great reluctance of several Ministers of Finance and Justice. Particularly in Germany, where both portfolios are in the hands of the liberal FDP party.
The debates between leaders also made it possible to resolve misunderstandings or to reassure the most suspicious Member States, particularly those which have built part of their own competitiveness on a dynamic and inventive financial sector. For example Luxembourg and Ireland, incidentally the two highest GDP per capita in the Union.
“We have stated that it is not a question of harmonizing the tax rate on corporate profits,” underlined Emmanuel Macron. But only the taxation of savings players or arbitrage mechanisms, for example.
It was also clarified that the new European supervision framework for these actors will not be added to national levels of control. Non-systemic actors will continue to be inspected at Member State level. Emmanuel Macron also assured that it is not a question of strengthening the role of Esma (European Financial Markets Authority), based in Paris…
Cheaper energy
For her part, Ursula von der Leyen, the President of the European Commission, insisted on the need to lower the cost of energy, which weighs heavily on European producers of steel, glass and cement. She welcomed the fact that many liquefied natural gas terminals will open in the coming months on the continent, which should allow a drop in gas prices.
She also spoke at length on human skills, while unemployment is at a historically low level in the EU and many sectors are unable to recruit the talent they need.
According to the President of the Commission, we must train unemployed young people, keep seniors in the job market, and involve more women. And consolidate legal immigration. Last year, some 3.5 million non-EU nationals came to the EU to work.
In defense of trade agreements
While free trade agreements have a bad reputation in certain member states, notably in France, Ursula von der Leyen defended the advantages that trade treaties bring to Europeans.
She took the example of Ceta, which since its entry into force has made it possible to increase European exports of agri-food products to Canada by 53%. A message to farmers who criticize trade agreements for exposing them to unfair competition from other blocs.
All these reflections will be found in the strategic agenda that the Twenty-Seven are currently preparing. This is the collected text which will contain the main priorities of the next legislative cycle (2024-2029). The European elections in June will give birth to a new European Parliament in July. A new Commission will take office at the end of the year.