2024-11-22 16:15:00
Recession and political crisis in Germany, cascading factory closures in France, productivity at half mast in Italy, budgetary rigor at all levels… The European economy is in bad shape. Stuck in sluggish growth, the Old Continent is struggling to see the end of the tunnel. And the arrival of Donald Trump at the White House next January could further blur trade relations between the world’s leading economic power and the European Union.
In this troubled climate, the three largest European employers’ organizations (BDI for Germany, Medef for France and Confindustria for Italy) have urged the new European Commission to “act quickly”. Gathered at a trilateral economic forum in Paris this Friday, leaders sounded the alarm.
« January 20, 2025 will mark a turning point with the arrival of the new President of the United States. The next two months will be essential for Europe to take a turn towards innovation, investment and security », they asserted in a joint statement presented to the press.
Competitiveness, simplification, innovation and investment
Caught between China and the United States, Europe has been going through a major zone of turbulence since the financial crisis of 2008. Recent reports from Mario Draghi and Enrico Letta have noted a severe economic decline. A dark picture shared by many economists of all stripes in France and Europe.
« Europe must become aware of the risk of dropping out. The Draghi and Letta reports must cause an electric shock. There is an emergency », Warned Patrick Martin, president of Medef. Faced with this drift, the Frenchman urged the European executive to act around four priorities: competitiveness, simplification, innovation and investment. On the first, Patrick Martin focused on “all low carbon energy solutions”.
Taking advantage of the visit of the Prime Minister and the Minister of the Economy, the employers’ organization insisted on “simplification”. “ Locking companies into a straitjacket of standards reduces the chances for companies to compete with international competition “, he warned.
Patrick Martin also took the opportunity to criticize the results of the previous European Commission. “ The former Commission did not take enough account of the employers’ words. Certain measures and standards go against the interests of businesses ».
For his part, the Prime Minister considers that “the Green Deal was a kind of ideology where we did not evaluate the consequences of what we did on the industry.” A subject which had already provoked lively debates during the European election campaign last spring.
Medef in favor of a revision of Mercosur
On the foreign trade front, Medef has shown itself to be in favor of a revision of Mercosur, under debate at the European Commission. “ HAS At the moment, Mercosur is poorly received by French public opinion. Certain provisions of this agreement must be revised “, he said. Regarding global trade, Patrick Martin defended a “liberal” vision of free trade.
« Europe must not retreat even if certain partners have unfair practices. We remain liberal and are convinced, because the figures confirm it “, he explained to his German counterpart Tanja Gönner, director general of the BDI.
Much criticized in France, this trade treaty with the countries of South America must be the subject of a debate in Parliament in a few days, Matignon announced. “ JI don’t know how to explain to French farmers why we would allow Brazilian beef to come in by the thousands of tonnes which do not respect the same health farming rules as those imposed on them », reacted Michel Barnier.
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How does Patrick Martin foresee the potential return of Donald Trump affecting trade relations between Europe and the U.S.?
**Interview with Patrick Martin, President of Medef**
**Interviewer:** Welcome, Mr. Martin. Thank you for joining us today to discuss the current state of the European economy and the implications of the upcoming U.S. presidential transition. There seems to be a pressing concern among European business leaders regarding the sluggish economic growth you mentioned recently. Can you elaborate on what you believe are the key challenges facing Europe right now?
**Patrick Martin:** Thank you for having me. Europe is indeed experiencing significant economic challenges, marked by recession in Germany, factory closures in France, and low productivity in Italy. The overall environment is underscored by a sense of urgency. Our economies are struggling to adapt amid heightened competition from both the U.S. and China. We need to prioritize innovation, investment, and security to navigate these turbulent times [[1](https://crsreports.congress.gov/product/pdf/IF/IF10931)].
**Interviewer:** You highlighted the importance of the upcoming U.S. election and the potential shift with Donald Trump returning to the White House. What specific impact do you foresee this could have on trade relations between Europe and the U.S.?
**Patrick Martin:** The arrival of Trump could indeed complicate matters further. We have already seen trade frictions between the U.S. and the EU. His administration may continue to adopt a tough stance on trade, which would make it imperative for Europe to act swiftly to strengthen its own economic policies and partnerships. January 20, 2025, could be a turning point that we must prepare for [[1](https://crsreports.congress.gov/product/pdf/IF/IF10931)].
**Interviewer:** You and several other European business leaders recently called for the new European Commission to act quickly. What specific measures do you advocate for?
**Patrick Martin:** We’ve proposed focusing on four key areas: competitiveness, simplification, innovation, and investment. First, enhancing competitiveness is vital, particularly through low-carbon energy solutions that can help us transition to a sustainable economy. Simplifying regulations is equally important; excessive red tape stifles innovation and competitiveness. We believe that the Commission must also pay closer attention to the voices of business to avoid implementing measures that hinder our economic growth [[1](https://crsreports.congress.gov/product/pdf/IF/IF10931)].
**Interviewer:** You mentioned the previous European Commission’s approach, particularly regarding the Green Deal. Can you elaborate on your and your organization’s stance on it?
**Patrick Martin:** The Green Deal is laudable in its ambitions, but we must evaluate its impacts on industry carefully. We felt that the last Commission operated under an ideology without fully assessing the consequences for businesses. Our goal is to encourage a more pragmatic approach that balances environmental goals with industrial viability [[1](https://crsreports.congress.gov/product/pdf/IF/IF10931)].
**Interviewer:** Lastly, regarding foreign trade, you expressed support for revising the Mercosur agreement. What are your main concerns with it?
**Patrick Martin:** The Mercosur agreement faces significant scrutiny here in France. Our main concern is the perception among the public and the potential implications for our agricultural sector. We believe that certain provisions must be revised to ensure that they align better with European interests and to gain public support [[1](https://crsreports.congress.gov/product/pdf/IF/IF10931)].
**Interviewer:** Thank you, Mr. Martin, for your insights. It’s clear that the road ahead for Europe is challenging, but your proactive approach provides a path forward.
**Patrick Martin:** Thank you for having me. It’s crucial that we stay vigilant and work together to navigate these challenges effectively.
