- 'When I look at the world as it stands, we see China, authoritarian regime ... we see the US, which is drifting further and further away from the rule of law,' says Emmanuel Macron
LONDON
French President Emmanuel Macron warned Tuesday that the situation for Europe has worsened since the Draghi report on EU competitiveness, saying the continent is facing a "dual crisis" from the China trade surge and US instability.
In an interview with several European outlets, Macron underlined that today, Europe faces an "immense challenge" in a world thrown into disorder.
He said that the US, which, it was once thought, would guarantee our security forever, "now casts doubt," while Russia, which was supposed to provide cheap energy indefinitely, stopped doing so three years ago.
He also pointed out that China, which used to be an export market for many, has become an "increasingly fierce competitor."
Asked where things stand now since the former Italian Prime Minister Mario Draghi's report on EU competitiveness in 2024, Macron said the situation "has worsened dramatically."
"Today, China has a trade surplus of $1 trillion with the rest of the world ... at the same time, Washington has imposed tariffs on us," he was quoted by French daily Le Monde as saying.
In his report, Draghi warned of the risk that the EU could die a slow death if it did nothing.
"In reality, we are facing a dual crisis: a commercial tsunami from China and split-second instability from the American side," said Macron two days ahead of the EU leaders' meeting in Brussels.
Europe faces 'three battles'
Saying that Europe needs to protect its industry as China and the US do, he underlined that the EU also needs to focus on certain strategic sectors, such as clean technologies, chemicals, steel, automotive, and defense.
"Otherwise, Europeans will be swept aside. This is a defensive measure, but it is essential because we are facing unfair competitors who no longer respect the rules of the World Trade Organization," he noted.
Macron said Europe faces "three battles": security and defense, climate change mitigation technologies, and artificial intelligence and quantum computing.
"In all these areas, we invest far less than China and the US. If the EU does nothing within the next three to five years, it will be swept aside in these sectors," he warned.
In response to a question about how much investment is needed in these areas, Macron pointed out that the Draghi report estimated that public and private investment needs in green and digital technologies amount to €800 billion (about $952 billion) per year.
He noted that the EU requires major programs to fund the best projects and advocated for a new joint borrowing initiative among the 27 member states, which would fund strategic investments and allow the EU to tackle the dollar's hegemony.
"...Given that the European budget is constrained, now is the time to launch a joint borrowing capacity for these future-oriented expenditures: future-focused eurobonds…"
'Let's offer it European debt'
Noting that the global market has grown increasingly wary of the American greenback, the French president said the global market is searching for alternatives.
"Let's offer it European debt. For investors everywhere, a democratic state governed by the rule of law is an enormous draw."
He added: "When I look at the world as it stands, we see China, an authoritarian regime. On the other hand, we see the US, which is drifting further and further away from the rule of law."
Asked about Europeans' stance in their response to US President Donald Trump's threats over Greenland, Macron said there was a "sense of cowardly relief."
"Just like in the summer of 2025, after the EU and the US signed the agreement on tariffs. There were threats and intimidation," he noted.
He suggested that when there is a clear act of aggression, Europe must not bow its head or try to find a compromise: "We tried that strategy for months. It does not pay off."
"More importantly, it strategically leads Europe to increase its dependence ... We have replaced our dependence on Russia with a dependence on the US, which now supplies 60% of our liquefied natural gas."
