Europe at a crossroads: Time to lead
Joint Declaration of BDI, BDA and MEDEF on the Occasion of the Franco-German Ministerial Council:
Europe at a crossroads: Time to lead
Trade tensions are once again on the rise, with recent EU–US tariff negotiations exposing just how fragile the global order has become. Europe cannot afford to hesitate: it must act as a powerful, sovereign, and competitive player. The Draghi report has issued a stark warning — the competitiveness gap is widening, and delay will only make the costs greater.
At the heart of Europe’s ability to respond lies the Franco-German partnership. This historic and political engine of integration has long translated compromise into common initiatives, shaping the Union’s direction and reinforcing its cohesion.
Our two European nations face profound challenges in security, growth and social stability in the years ahead. At the Franco–German Council of Ministers on August 28-29, we must send a clear signal to our citizens and other countries.
We, BDI BDA and Medef, call upon our leaders to embrace forceful policies in order to safeguard our security, foster our prosperity and support social stability
First, France, Germany and the EU must jointly deliver on their strong defense commitments, strengthen our collective security in NATO and support a sovereign and free Ukraine. Building a credible European defense requires unprecedented industrial cooperation on innovation, production and cyber as conceived in the German-French “reset” of May 2025.
Second, we need to strengthen economic growth and innovation at home and in Europe. Competitiveness must be the foundation, by strengthening private and public investment, alleviating administrative burdens on companies, providing affordable energy, deepening the single market, promoting innovation, disruptive start-ups and new technologies such as AI and quantum and forging new, strong relationships in global trade and investment with improvement of free-trade agreements as Mercosur treaty. A joint stance on a modernized Multi-Annual Financial Framework is needed as well. We also need to lighten administrative burdens, which suffocate growth, and strongly support the Commission’s Omnibus proposals, especially on CSRD and CSDDD.
Third, we need to strengthen the social fabric, including through coordinated social reform agendas, measures to increase the sustainability of social security systems and the enhancement of social dialogue and partnership. Moreover, Europeans must be equipped with cutting-edge skills—through education, training, and lifelong learning programs across the continent. Worker mobility between our two countries should be encouraged through simplified, incentive-based schemes.
EU has appeared weakened under major economic attacks. It is not too late to regain its leading position. But it must decide now with one voice to recover prosperity and competitiveness.
