The structure of energy, European cooperation, public funding, education, etc. The High Commissioner for Planning lays out his proposals for the revival of industry in France. With the conviction that it is a subject of national sovereignty: “If our economy is too dependent on external forces for essential goods, our freedom is only an appearance,” he warns.
Challenges. The war in Ukraine has highlighted the heavy dependence of France and especially European countries on Russian gas. Can we find a form of energy sovereignty in the short term?
François Bayrou This is a long term project. To no longer depend on Russian gas, Europe must develop other capacities, liquefied gas, LNG ports or storage facilities that are not currently in use, and of course nuclear, renewable, hydroelectric power, which we can expand. It will take months or even years, but it is a very important investment.
After the Covid-19 epidemic, the war in Ukraine also demonstrates the risks of too strong economic interdependence between countries. Will we witness the beginning of the end of globalization?
For several decades, we thought that these two eternal threats of epidemics and wars were over. We were wrong. These two successive crises forced France and European countries to ask themselves a question that they had not asked for a long time – the question of sovereignty. We understand that if our economies are too dependent on external forces for essential goods such as health products, energy, food, etc., our freedom is really only a facade.
How to change a deal?
This can only happen through political leadership, a pooling of public and private efforts, and a form of participatory planning. Two years ago, when the President of the Republic decided to re-establish the High Planning Commission, everyone ridiculed the anachronistic institution. Today, everyone understands that if France had planned more in recent years, thought more about a strategy that guarantees its health and energy independence, it would be better prepared for the Covid-19 epidemic than for the war in Ukraine.
You are in favor of a return to a planned economy…
No one thinks of reviving the 1950s Plan, but I am sure that the power of political will, shared with companies, can create a new climate that will affect the management of the economy. The general interest must regain its place. The interests of shareholders cannot be the only guideline for investment or location of production sites. The state should engage in dialogue with large and medium-sized companies, from CAC 40 groups to large small and medium-sized enterprises. And great decision makers should remember that they have a nationality.
Specifically, how will the High Planning Commission operate during Macron’s possible second five-year term?
In eighteen months, we proved that such a structure can work economically: I am a volunteer, and my team has only seven or eight employees. That hasn’t stopped our work from leading to some very strong political choices: the release of the March report on the power industry has allowed us to rethink the issue of resurrecting nuclear power. Therefore, it was decided to finance the construction of six EPR reactors. This is also true for debt and demographics. In the future, however, questions will have to be asked about the scope of the High Planning Commission, its increased resources, and its relationship with the executive branch. Moreover, Emmanuel Macron decided to defend the idea of a new site for the Plan in his project.
Does France really have the means to finance an industrial policy worthy of the name?
The state cannot do everything and does not have the means to keep all companies at arm’s length. This is by no means a goal. But it has the ability to make policy and bring all economic actors—administration, businesses, unions, etc.—around the table to set priorities. The reconquest of production, agricultural, industrial, intellectual, will go through this.
Even if it means further digging into the public debt?
Thanks to the European Central Bank and the single currency, France borrows at 0%! Government debt that finances investments that yield higher returns than the borrowing rate is good debt. I will add that in the period of the “war economy” the reduction of the public debt arises in new terms: cantonment and lengthening.
Does the cost of labor slow down the transfer of industrial activity?
If we see the world as it is, the question of the cost of labor no longer has the same acuteness. First, because France has closed the gap with Germany in ten years. Then, because the industry of tomorrow is based primarily on robotics, algorithms, data, etc. The challenge is not to “move” the factories from the past, but to master the technologies of the factories of the future and have production sites on our territories to maintain our ability to innovate from products.
Should this industrial reconquista take place on a European or French scale?
You don’t have to be naive. All European countries are striving to strengthen their industry. Everyone defends their interests, and the European Union is not a charitable organization. My doctrine is rather “help yourself and Europe will help you”. We have seen how France had to fight to have nuclear power included in the list of European green energy sources. We must take over the promotion of 100% of the French sectors. Even if in some sectors, such as semiconductors or aeronautics, European cooperation is essential.
Does the reindustrialization of France also take place through the improvement of our education system?
The rebuilding of the school is necessary. In addition to the economic problem, education plays a fundamental role in the cohesion of the country. In addition to the necessary salary increases for teachers, I am convinced that the Ministry of Public Education should organize a systematic selection of the best teachers. The methods of these hundreds of thousands of “teaching geniuses” that each of us met in our student years and whom the administration ignores, should irrigate the professional development of all teachers.