Comment: a growth strategy for France and the EU in the 21st century

The Robert Schuman Foundation asked Jean-Paul Betbèze, Professor of economy at the Paris II-Panthéon-Assas, for a diagnosis on the French and European economies ahead of the Spring European Summit.

The European Summit on 23-24 March will give EU heads of states another opportunity to express their views on the relaunch of the Lisbon strategy for growth and jobs, as well as on the EU’s much debated industrial policy.

In this interview with the Robert Schuman Foundation, Jean-Paul Betbèze gives an insight into the weaknesses of the French and European economies and on their perspectives for recovery.

To set the scene, M. Betbèze emphasises the growing “polarisation” of the global economy – between high US and Asian performance on the one hand and the second-rate European record on the other. Betbèze argues that the European economic stagnation, often attributed to low consumption rates, is in fact mainly a supply problem that has not been properly taken into account in public action. On this particular issue, Betbèze points to the insufficiencies of the Lisbon strategy (notably its weak governance) and to the lack of a genuine pan-European industrial policy.

In addition, Betbèze says the French economy suffers specific problems, namely: low added value content of national products, due to a weak innovation capacity and an ill-adapted fiscal policy. 

In order to remedy the European economic “malaise,” M. Betbèze suggests relying on the catalyst role of large companies, organised in highly specialised competitiveness and innovation clusters not only at national, but also at European level. On the financial side, liquidities should be re-directed towards the most productive sectors of the economy, he argues. 

Moreover, Betbèze argues that an EU growth policy should be backed up by member states’ actions in three policy fields: fiscal, legal and educational. 

According to M. Betbèze, the basis for such a relaunch does exist, including the structures needed to implement it (the European Investment Bank, for example). What is now urgently required in this “team catching-up” effort is strong political will, he says. 

To read the full interview, please click here.