French President Emmanuel Macron unveiled a plan worth 30 billion euros ($35 billion) to create an economy based on advanced technology, addressing the decline of the industrial sector that has persisted for years in the eurozone's second-largest economy. The plan, called "France 2030," focuses on investing over five years in sectors including nuclear and renewable energy, electric vehicles, semiconductors, and robotics.
In a speech delivered at the Élysée Palace on Tuesday, Macron stated, "I want us to look forward and see our weaknesses and strengths. We need the state to produce more." "France 2030" is the latest initiative in the country's long history of injecting funds to support industrial revival. Following the global financial crisis, former President Nicolas Sarkozy launched a 35 billion investment program, which was renewed three times. However, Macron emphasized that this plan is different as it will require greater risks and will not rely on established industrial companies.
Despite various efforts made by successive governments, the share of industry in the French economy has continuously declined, with France failing to achieve a trade surplus in goods since 2002. With six months left before the presidential elections, Macron faces pressure to demonstrate his ability to reclaim those wealth, particularly in the heart of industrial regions, where he faced challenges in garnering votes in 2017.
He added that he wants to establish an effective cycle of innovation, production, and export to finance our social model. Macron affirmed, "We are an innovative country; it's part of our DNA, but alongside this, we have real weaknesses. We have reduced investment in education, training, and higher education, and we have a workforce quality that is not at the appropriate level."
Macron outlined three main goals for France 2030:
- Construct small reactors in France
- Make France a leader in green hydrogen
- Decarbonize the French industry
This initiative comes just one year after the "France Relaunch" program, worth 100 billion euros, which also aimed to move beyond crisis spending to address the country's long-term issues of declining investments and employment. According to government forecasts, nearly a third of this program will remain unspent by the end of the year.
The investment plans align with French industrial policy, but they place Macron increasingly on the edge in Europe, where other countries have begun discussing the need to return to some form of fiscal discipline after crisis spending inflated deficits during COVID-19. Macron's move is particularly surprising given that when his government first discussed "France 2030," it stated that European partnerships would be a necessary condition for success.
