France's Macron Calls For 'Sovereign' Europe, Stresses For Cooperation On Defence, Clean Energy

French President Emmanuel Macron while addressing global business and political leaders at the World Economic Forum Annual Meeting 2024 has emphasised the need for Europe to enhance its sovereignty in defence, clean energy generation, and critical technologies, such as artificial intelligence (AI), quantum, and semiconductors. 

In his speech, President Macron stressed the importance of creating more well-paid jobs to instil hope during the transition towards the future. To achieve this goal, he called for a shift towards increased investment and reduced regulation, advocating for an economic agenda centred on innovation and industrialisation. “This is absolutely critical if we want to avoid a big crisis,” said Macron, adding that “it will take a decade to do so.” 

The president outlined his vision for a more sovereign Europe, characterised by a "balanced equilibrium," emphasising the necessity of maintaining partnerships while “not [being] over-dependent in critical areas of your value chains and on some geographies.” 

Macron acknowledged Europe's competitiveness gap with the US and China, both of which are heavily investing in cutting-edge technologies. He highlighted the challenges posed by US President Joe Biden's Inflation Reduction Act, noting its divergence from world trade rules. Despite these challenges, Macron urged Europe to increase investments in clean technologies. 

France, under Macron's leadership, committed to leading in competitiveness by implementing additional labour market reforms, making unemployment benefit rules more stringent, simplifying hiring processes, and streamlining permits for renewable energy projects. The president advocated for a deeper union of Europe's capital markets to enhance the effective allocation of the continent's extensive savings. 

President Macron's vision for a more sovereign Europe is shaped by recent crises, including Covid-19, Russia's conflict with Ukraine, and tensions between the US and China, revealing Europe's dependence on external sources for energy, defence, and technology. “We are now reaching a watershed moment,” he said, adding that “2024 will be the year when European countries and the EU will be in a position to decide if we want to be sovereign or not.” 

On the topic of defence, Macron applauded the collaborative efforts between France and Germany in response to the Ukraine conflict, laying the foundations for a European defence strategy that was previously unthinkable. On the energy front, Macron highlighted France's position with one of Europe's cheapest, most stable, and low-carbon electricity grids, with around 70 per cent sourced from nuclear power. The president announced plans for the construction of 14 new nuclear reactors as part of France's commitment to achieving net zero emissions by 2027, including the phase-out of coal.