Macron Warns EU ‘Could Die’ Within 3 Years Due to Overregulation, Welfare Burden, Underinvestment

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The president of France warned that the European Union faces collapse unless it cuts regulations, boosts investment, addresses unsustainable social spending.

French President Emmanuel Macron issued a stark warning on Oct. 2, stating that the European Union faces existential risks in the next two to three years unless it drastically reforms its regulatory framework, bolsters investment, and addresses unsustainably high social spending.

Macron made the remarks during a panel discussion at a conference in Berlin on Oct. 2, warning that the EU’s current economic model is unsustainable. Without urgent reform, he cautioned, the bloc risks losing its competitive edge, falling significantly behind global powers like China and the United States, and ultimately sinking into economic irrelevance.

“Our former model is over,“ Macron said. ”We are overregulating and underinvesting. In the two to three years to come, if we follow our classical agenda, we will be out of the market.”

Concerns have been growing across the EU regarding the bloc’s competitiveness, fueled by persistent underinvestment in key sectors, rising regulatory burdens, and escalating social welfare costs. The French leader said that Europe must confront these challenges head-on or risk irrelevance in an increasingly multipolar world order.

“If we want clearly to be more competitive and have our place in this multipolar order, first we need a simplification shock,” Macron said of the need to reform the bloc’s regulatory framework.

Over the past decade, the EU has implemented various regulations aimed at protecting consumers, the environment, and workers. However well-intentioned these policies may be, according to Macron, they have created a complex and overly rigid regulatory framework that stifles innovation and hampers growth—particularly in sectors like artificial intelligence and defense.

The French leader said the EU’s economic model is outdated and needs to be revamped, particularly since it can no longer rely on cheap Russian energy to boost business profit margins or count on the United States to handle the bloc’s defense needs.

“The EU could die,“ Macron said. ”We are on [the] verge of a very important moment.”

By Tom Ozimek

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