In a constantly changing global context, Europe finds itself at a decisive crossroads in 2024. While free trade has long been seen as a lever for economic growth, a wave of skepticism is beginning to rise among citizens. But why is this pillar of European policy no longer appealing? In this article, we will explore the reasons behind this growing disenchantment and the potential implications for the future of the continent. Dive with us into this analysis to understand the stakes of free trade in Europe.
Free Trade Agreements Facing Growing Criticism
Free trade agreements, once hailed for their ability to open markets and stimulate the economy, are now facing increasing opposition within the European Union. Diverse voices on the political spectrum, from left to right, emphasize the need to reconsider the intense liberal stance in reaction to several global issues, such as the rise of Chinese production and increased competition from the United States. These challenges have led candidates to redirect their discourse towards more protectionism and economic sovereignty, questioning the principles of pure free trade.
The proposed agreement with Mercosur, as well as the provisions of CETA, for example, are under fire for their potential threat to European environmental and social standards. Major political forces propose to establish mirror clauses, ensuring that any trade agreement also respects these essential standards.
Redefining Industrial Policy in Europe
The influence of the Inflation Reduction Act in the United States has sparked renewed interest in a strong industrial policy within the EU. The need to re-industrialize Europe, especially in key sectors such as ecological transition, has become a point of agreement among many candidates. They propose massive public investments and incentives for companies that choose to relocate their operations to the European continent.
In this context, the flexibilization of state aid frameworks is being considered to enable individual nations to support strategic initiatives without strict constraints. This also includes the proposal to mobilize savings and offer specific subsidies aimed at encouraging industrial development in Europe.
Trade and Economic Defense Against Chinese Expansionism
In the face of increased international competition, particularly from China, candidates are proposing various protectionist measures to safeguard European interests. The use of higher tariffs and border taxes, especially carbon taxes, is being discussed as ways to defend the European economy. These taxes could be expanded to combat “ecological and social dumping,” aiming to protect not only the economy but also environmental and social standards.
Beyond the imposition of tariffs, some candidates are also considering advanced mechanisms that would specifically respond to commercial war crises. These measures underscore a proactive approach necessary to maintain European competitiveness in an increasingly demanding global market.
In conclusion, as Europe prepares for the 2024 elections, the policy of free trade seems to be transforming. The imperatives of economic protectionism and reconsideration of trade agreements require a more nuanced approach. This evolution reflects an awareness of the limits of barrier-free economic openness and the necessity to simultaneously preserve the economic, social, and environmental interests of Europe.
Source: www.la-croix.com
