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Caught between the US and China, squeezed Europe strives to find its way

At France’s annual economic forum, Europe’s economic and political leaders addressed the continent’s problems – and what to do about them

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Christine Lagarde, president of the European Central Bank (ECB), speaks at Les Rencontres Économiques d’Aix-en-Provence in southern France, the country’s annual flagship economic forum. Photo: Handout
Xiaofei Xuin Aix-en-Provence
In the July heat of the southern French city of Aix-en-Provence, economic and political leaders from across France and Europe packed into vast white marquees – with no air conditioning – for three days of debates about the future of Europe that were heated in every sense of the word.
The goal was to find a way out of Europe’s political and economic malaise in “a world without bearings”, the theme of this year’s edition of France’s annual flagship economic forum, Les Rencontres Économiques d’Aix-en-Provence, held from Thursday through Saturday.

The diagnosis was near-universal: Europe has big problems. Caught between the United States and China, it risks being squeezed on every front – security, technology, democracy and industry.

On what exactly Europe should do, a few policy options emerged from the usual cacophony: move much faster – even if that meant a few willing countries pressing ahead without the rest – and finally build a genuine capital markets union that would put Europe’s vast savings to work.

Perhaps no one summarised the situation better than Édouard Philippe, the former French prime minister.

“When the Chinese discuss trade with Europe, I don’t think they underestimate Europe at all. I think they read us perfectly,” Philippe said. “They see it [Europe] as weak. And in a way, vis-a-vis our Chinese partners, it is weak.”

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