Bruno Le Maire, the French under-secretary of state for European affairs, made things crystal clear ten days ago when he announced that France and Germany had agreed to closely coordinate their economic policies and lay the foundations of an EU industrial policy. I am not aware of any subsequent fudges or 'watering downs' of this statement. This is a significant development because it means the famous second leg of Economic and Monetary Union is taking shape. In Jacques Delors' words, EMU is limping because it has a strong monetary leg but a virtually non-existent economic leg. Bruno Le Maire announced that France and Germany had agreed to push forward by the most tangible means rather than a talking shop - by getting things up and running and giving their approach a European flavour and meaning.
As far as I am aware, nobody has denied this. Let me point out that Le Maire made this assertion after the most recent Franco-German summit in a series of statements and an in-depth interview with French newspaper Le Figaro on 8 April, reporting back on what had happened and commenting upon it.
Economic coordination and industrial policy. Bruno Le Maire said the most recent Franco-German meeting had 'paved the way for coordination of economic policies,' implying that any important decision taken by either country on economic matters would be examined by both. He added: “This must encourage a European economic policy and a European industrial policy in the next ten years.” In his view therefore, France and Germany are already working on what the EU27 must do down the track.
Asked whether this means that the Germans have lifted their objections to EU economic governance, Bruno Le Maire replied: “Let us not quibble over terminology. It is the facts that count and the coordination of our economic policies is a fact.” He gave the example of the car industry, explaining: “We have to pool our resources to finance an engine for the future, be it hybrid or electric. We will hold talks between French and German politicians and captains of industry at the big car manufacturers.”
Europe. Bruno Le Maire explained the three criteria he believes are necessary for putting the European industrial policy he is calling for into practice. An appropriate competition policy is required that will make it possible to set up European-scale industrial companies in vital industries. “The time when competition alone was the alpha and omega of European policies is past. What we need now is a true industrial policy that encourages the birth of European industrial giants (…) You can't have a single currency without a European economic policy and the first stage of this is a genuine industrial policy.” This is crucial in some industries, among which Le Maire cited high-speed transport, space, infrastructure, solar energy and the car engine of the future, adding: “We are scattering resources too thinly at present.”
He added a third factor vis-à-vis relations with the outside world. He said it was necessary to “spell out the principle of reciprocity very clearly (…) In the United States, there are legal clauses that ban any majority stake in strategic US companies being bought up by non-US players. Why shouldn't the European Commission have the same scrutiny and veto powers?”
Strengthening the limping limb. Nothing suggests that the three areas outlined above (adjusting the competition policy, creating European industrial giants and the principle of reciprocity) are France's position. One may ask to what extent they are shared by the French government and the French president, not to mention the German government and EU circles. What Le Maire suggested for competition policy will probably not be to everyone's taste; competition rules also protect consumers, smaller companies and the economies of less powerful countries. Recent examples of Franco-German companies demonstrate the controversial and complex nature of managing giant multinationals. All the same, these ideas came from the politician responsible for France's European policy. He deserves praise for opening the debate and announcing that France and Germany are planning to strengthen the limping limb of EMU.
(F.R./transl.fl)