ProMarket - Competition, Not Consolidation, Is the Key to a Resilient and Innovative Europe
Director of Europe and Transatlantic Partnerships Max von Thun demands a new economic vision for the European Union by pursuing competition to create a robust political economy that can take back power from corporate behemoths.
In the run up to the European Union elections in June—with the far-right predicted to make unprecedented gains—many are worried about what the future holds for the European project. While such soul searching is a natural part of the electoral cycle, it is clear that this time the stakes are higher than they have been for many years.
Europe is grappling not only with the aftermath of a pandemic and Russia’s war in Ukraine, but also with an increasingly assertive China and a politically volatile United States. Furthermore, a growing number of Europeans are questioning Europe’s ability to play a leading role in the global economy of the 21st century, be this in artificial intelligence and advanced semiconductors or electric vehicles and renewable energy.
Despite these challenges, and notwithstanding a flurry of legislative activity in Brussels in recent years, Europe continues to lack a compelling overarching vision of the future. Three figures have stepped in to fill this intellectual void: former Italian Prime Minister Enrico Letta, another former Italian Prime Minister and former head of the European Central Bank, Mario Draghi, and French President Emmanuel Macron.
Naturally, the specific analysis and proposals put forward by each man vary. Letta’s 147-page report packs in lots of useful (and not so useful) practical ideas on strengthening the EU’s Single Market, but ultimately lacks a coherent unifying narrative thread. For his part, Draghi has yet to publish his much-anticipated report on “competitiveness,” but his recent comments suggest a narrow lens focused too much on relativistic economic comparisons with other countries, and not enough on Europe’s own unique traditions, values and capabilities.
Macron’s vision—set out in a recent speech at the Sorbonne and a long interview in the Economist—makes a far more compelling case for the significance and urgency of the present moment. He does this by addressing Europe’s economic challenges not in isolation, but against the backdrop of a wider debate on the future of Europe’s distinct social model, its waning geopolitical influence, and its political and philosophical foundations.
Despite these differences, what Macron, Letta and Draghi all share is an accurate diagnosis of the overall problem: that Europe’s economic and political institutions remain too divided and fragmented, and too dependent on others, to adequately respond to the challenges of the day, be these geopolitical, economic, or environmental. The logical conclusion is that only through greater economic and political integration can Europe get itself back on track.
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