French president says Europe must take lead in climate change and tax reforms
Emmanuel Macron, the president of France, yesterday called for a 10-year plan to build a stronger Europe to act as a counterpoint to the influence of China and the United States.
In a defence of his pro-European values, Mr Macron cited disagreements over climate change and trade as reason to promote the European Union as a greater economic and political power.
He said he wanted a “global compact” to prevent a race to the bottom on taxes and regulation and called on the International Monetary Fund to examine cyber-currencies and the least regulated part of the financial system.
“If we want to avoid this fragmentation of the world we need a stronger Europe, it’s absolutely key,” he told the World Economic Forum.
Mr Macron defended his labour and tax agenda that has proved unpopular in France.
The former investment banker announced a €10 billion (Dh45.5bn) innovation fund as he sought to portray France as a place to do business.
“France is back at the core of Europe, because we will never have any French success without European success,” he said.
Mr Macron was the third European leader yesterday to warn of the dangers of isolation before the arrival of US President Donald Trump today.
Mr Trump is due to speak to the conference tomorrow to promote his America First policies which have led the US to abandon treaties on trade and the environment.
Mr Macron has been the foremost proponent of a more united, reformed and integrated EU, while seeking to benefit from the fallout of the UK’s decision to leave the 28-nation bloc.
But his labour reforms have proved unpopular, and he urged the Davos audience that populations needed to be convinced of the benefits of globalisation, or forces of nationalism would emerge victorious.
He warned that millions could lose their jobs through the advance of artificial intelligence and said businesses had to take more responsibility for retraining to create jobs.
“We need less arms and more brains,” he said.
He displayed his pro-business credentials on Monday, when he invited 140 leaders of industry to a meeting at the grand Palace of Versailles, taking advantage of the lure of the forum across the border in Switzerland.
The line-up included Goldman Sachs’s Lloyd Blankfein and Sheryl Sandberg of Facebook.
The event was co-ordinated with a series of pledges amounting to $3bn from companies including Toyota.
Social media giants Google and Facebook both pledged investment for centres on artificial intelligence, building on a pledge by Mr Macron to develop the country’s high-tech capabilities.