2024-11-13 13:21:00
The governor of the Bank of France bangs his fist on the table. François Villeroy de Galhau, this Wednesday called on Europeans to unite after the election of Donald Trump as president of the United States, in particular France and Germany. “ Europe must wake up “, he declared on France Inter. “ This was true before the election of Donald Trump, but it is even more true today », added the central banker. “ If I had to summarize the European road map, I would first say that Europe must recover. And let’s stop self-flagellation “, he continued.
« We have assets in Europe. (…) Europe must also come together (and) strengthen its muscles », he elaborated, citing recommendations from the recent report by the former head of the Italian government Mario Draghi: “ Asee more of a single market, mobilize our savings and simplify (too numerous and) too complicated standards ».
« On the other hand, if we are separated, and in particular France and Germany, that means that we will remain sitting on the sidelines of the global economic match. », Warned the central banker.
10% to 20% customs duties in the United States
This warning must, of course, be placed in the light of the program of the new American president. Donald Trump announced, not only wanting to impose new customs duties of 60% against China, but also and above all, of 10 or 20% on products from the rest of the world. A significant surcharge, compared to the 3.3% average customs duties charged by the United States today. As a result, the consulting firm Roland Berger estimates that the Old Continent would still suffer $533 billion in cumulative GDP losses between now and 2029, compared to a loss of 827 billion dollars for China.
Faced with this threat, the French Minister of Foreign Affairs already stated on Tuesday that “Should the Trump administration persist in what I have called a major mistake, then we will defend our agricultural, industrial and commercial interests with iron will and without trembling. »
For his part, German Chancellor Olaf Scholz declared this Wednesday that Germany must “ do everything “, after the election of Donald Trump, to maintain good relations with the United States which are ” a basis for success » of the largest European economy. The German leader stressed having had “ good maintenance » with Donald Trump following his presidential victory.
« We must continue to do everything to ensure that these relations continue to develop well over the coming decades, regardless of the government in place here or there. “, he pleaded before the Bundestag.
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#Faced #Trump #Europe #wake
**Interview with François Villeroy de Galhau, Governor of the Bank of France**
**Editor:** Good afternoon, Governor Villeroy de Galhau. Thank you for joining us today. After the recent election of Donald Trump as President of the United States, you’ve called for Europe to unite. Can you elaborate on why you believe this is crucial at this moment?
**Villeroy de Galhau:** Good afternoon, and thank you for having me. The election of Donald Trump presents a significant challenge—both politically and economically—for Europe. My call for unity stems from the need for a cohesive strategy to address the potential impacts of his policies, particularly regarding trade. Europe must wake up and recognize that we cannot afford to act in isolation, especially when it comes to our economic interests and global influence.
**Editor:** You mentioned the need for Europe to recover and stop self-flagellation. What steps should Europe take to regain its footing?
**Villeroy de Galhau:** Our roadmap should prioritize recovery and collaboration. We have significant assets in Europe—our single market, our savings, and the potential for simplified regulations. We need to strengthen our positions and take bold steps, like implementing a carbon tax at our borders to enhance competitiveness. If we remain divided, particularly between major players like France and Germany, we risk sidelining ourselves in the global economy.
**Editor:** With the potential for customs duties of 10% to 20% under the Trump administration, what should European countries be prepared to do?
**Villeroy de Galhau:** We must prepare for a more protectionist approach from the U.S. This means that as Europeans, we should look to fortify our trade relationships within the EU and with other global partners. The imposition of increased duties could hurt our exports, so it’s vital for Europe to present a united front to negotiate effectively and shield our economies from unilateral measures that could disrupt trade.
**Editor:** You mentioned strengthening the European economy. What specific actions would you recommend to achieve this?
**Villeroy de Galhau:** The recommendations from Mario Draghi’s recent report provide a solid foundation. We need to see more integration within the single market, facilitate the mobilization of savings towards investments, and simplify the often-complicated regulatory landscape. This will not only enhance our economic resilience but also prepare us to respond effectively to external pressures.
**Editor:** Thank you, Governor Villeroy de Galhau, for sharing your insights. It’s clear that a unified European response will be essential in navigating the challenges ahead.
**Villeroy de Galhau:** Thank you for having me, and let’s hope we can move towards a more cohesive and proactive Europe.
