Emmanuel Macron, President of France, gestures during a special address as part of the annual meeting of the World Economic Forum in Davos, Switzerland, Wednesday, Jan. 24, 2018.
Among the many casualties of Europe’s decade-long economic crisis was a sense of collective purpose among the region’s leaders. The downturn was exacerbated by the unique defects of the euro — a shared currency that operates without a joint budget or political agreement among member states.
Mr. Macron has devoted his first months in office to arguing for the creation of a shared eurozone finance minister along with euro-wide budgets, enabling better coordination of economic policies when crisis returns.
Ms. Merkel has expressed cautious support while assiduously avoiding blessing anything that smacks of transferring German wealth to the less prosperous countries of the Mediterranean — a radioactive proposition among German voters.
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“We must not give in to the idea of a world destined to be split between a cosmopolitan digital elite and an army of precarious and underpaid local workers,” Paolo Gentiloni, prime minister of Italy…
For years, Italy has been the face of Europe’s most deep-seated problems: its banks stuffed with terrible loans, its communities full of young people who have moved in with their parents for lack of jobs.
But even Italy is now sharing in Europe’s economic expansion, though joblessness remains rampant. The country’s prime minister used the stage here to argue that now is the moment to attack economic inequality. Either that, or the forces of populism will triumph, he warned — a clear worry about Italy’s approaching national elections, and the ascendant Five Star party, which has been hostile to the euro.
“We must not give in to the idea of a world destined to be split between a cosmopolitan digital elite and an army of precarious and underpaid local workers,” Mr. Gentiloni said. “This worry, and these frustrations, are our main concern.”
These sorts of mission statements are increasingly dominating the political conversation in Europe — nowhere more than in France, where Mr. Macron, a former investment banker, has pledged to make his country more appealing to business while strengthening unemployment benefits and training for castoff workers.
The centerpiece of Mr. Macron’s efforts are the labor reforms he introduced last summer, making it easier for employers to terminate workers. In his speech here, he cast that not as a means of relinquishing labor to the unsentimental winds of capitalism, but rather giving start-up companies relief from the strictures of national labor contracts negotiated by unions.
Employers have in recent weeks used their newly acquired authority to fire to do just that, while the supposed Nordic-style worker protections Mr. Macron has promised have yet to materialize.
Mr. Macron promised to fill the void, vowing to spend 15 billion euros — about $18.6 billion — over the next five years on education and retraining.
“If I cannot explain to people that globalization is good for them, and that it will help them develop their own lives, then they will be the nationalists, the extremists who want to get out of the system,” he said. “And they will win in every country.”
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