French President Emmanuel Macron on Wednesday called for a de-escalation of tension between China and the United States as he addressed the World Economic Forum in Davos.

As he proposed further capital market union and urged more investment for Europe in his speech, Macron also stressed the need for the European Union to reduce its dependence on major powers and avoid escalating geopolitical tensions.

"Our strategy vis-a-vis China in this context is not a decoupling strategy, but a de-risking strategy," he said, referring to moves aimed at restructuring global supply chains that are now often centred in China.

Talks about "decoupling" from China, which emerged during the US-China trade war from 2018, have grown stronger in the wake of the Covid-19 pandemic and increasing geopolitical tension.

A day earlier, in his speech at Davos, Chinese Premier Li Qiang criticised attempts to "disrupt or undermine" the current global industrial supply chain and called for "effective safeguarding of the stability and smooth flow" of the current system.

To "block or break" the supply chain would be both inefficient and full of economic and social risk, Li said.

Macron said the de-risking strategy is "totally accepted by China" and a "fair" way to cooperate while preventing the EU "from being too ... dependent on some critical part of our value chain".

"But let's be clear. It's not good for Europe as well to be totally dependent on the US on some part of the value chain," he told the forum.

Macron reiterated that the European Union project is about not being dependent on the big powers and said its autonomy was not only critical to preserving jobs and promoting growth for the continent, but also "absolutely critical to preserve our voice in this world".

The EU needs to be able to deal with Asia, Africa and other countries as a European, and "that's not as somebody being seen as totally dependent on the US", he said.

Macron also announced some of his domestic reform plans for the year ahead and suggested a joint debt "'Eurobond" for more European public investment and to "deepen the capital markets union".

He encouraged more investment in "future" industries like artificial intelligence, saying the US and China have been investing heavily in the technology.

"We have to avoid any escalation in tension. This is why I'm part of those who are now pushing for de-escalation in tension between China and the US," Macron told the forum.

Macron argues for 'a more sovereign Europe' at Davos economic forum

French President Emmanuel Macron pressed for increased European investment in advanced technologies and critical supply chains in order to keep pace with the United States and China.

Macron, speaking at the World Economic Forum in Davos, said he wanted to see "a more sovereign Europe."

"It doesn’t mean killing your links, killing your partnerships and killing your alliances. But it means to not be overdependent in some sectors of your value chains in some geographies," he said.

As in the face of the coronavirus pandemic, the European Union must jointly drive investment by deploying more tools, like the issuance of euro government bonds.

More money must be channelled into innovation and industrial development, for example in artificial intelligence, environmentally friendly companies and semiconductor technology, he said.

Macron called for the establishment of a capital markets union, which would reduce bureaucratic hurdles between EU states in order to give companies more opportunities to raise money.

"We need to create more and better-paid jobs," said the president.

France finalizing security agreement with Ukraine — Macron

France is nearing completion on a bilateral security agreement with Ukraine, following the example set by the UK, French President Emmanuel Macron said at the World Economic Forum in Davos on Jan. 17.

He emphasized that such an agreement would serve as a means of “exerting pressure” on Russian dictator Vladimir Putin.

Macron added that there is strong coordination between Ukraine and NATO members, which has led to the proposal of signing bilateral agreements with some key alliance members. These agreements would ensure Ukraine’s security and would not be dependent on NATO membership.

“[UK] Prime Minister [Rishi] Sunak traveled [to Kyiv] a few days ago and signed such an agreement,” said Macron.

“We are completing our work on a similar agreement with Ukraine.”

On Jan. 12, the UK and Ukraine signed a ten-year security agreement.

London will exchange intelligence with Kyiv, assist with cybersecurity, military training, and develop mutual defense-industrial cooperation.

The agreement also commits the United Kingdom to consult with Ukraine in case Russia launches another attack and to provide "rapid and sustained" security assistance.

On Nov. 29, 2023, French Foreign Ministry spokeswoman Anne-Claire Legendre stated that France intends to conclude a bilateral security agreement with Ukraine by early 2024.

Macron Calls for Joint European Bonds to Fund Defense, Tech.

 French President Emmanuel Macron backed the issuance of joint European debt to pay for priorities including defense and technology in order to ensure Europe remains sovereign amid increasing competition with China and the US.

“We need more public investment in Europe, so we should open a second phase of reinvestment as we did during the Covid crisis, and maybe daring again to have Eurobonds for priorities,” Macron said, addressing the World Economic Forum in Davos.

He cited Estonian proposals for Eurobonds for the defense industry and Ukraine, as examples of such priorities.

Estonia floated the idea of bonds to fund defense spending last year, according to people familiar with the proposal who spoke on the condition of anonymity. European Council President Charles Michel raised the idea of defense bonds in November, saying it was in our “common interest.”

In 2020, the EU agreed to a massive debt-financed €724 billion ($786 billion) Covid recovery fund — heralded as a Hamiltonian moment — to limit the severity of the economic downturn. At the time, supporters insisted such a measure would only happen once. Talk of a new program underscores the massive amount of spending Macron and others envision is needed to keep the EU competitive.

The EU is also struggling to strengthen the defense sector and boost arms production as Russia’s war in Ukraine drags on and as questions continue to crop up — particularly ahead of the American elections in November — as to how long the US will continue aiding Kyiv.

Among areas in which Europe needs to push investment are AI, chips, space and defense, Macron said. “I think 2024-2025 will be the years where European countries and the EU as an entity will be in a situation to decide if we want to be sovereign or not,” he said.

He added that Europe needs to create a single capital market to spur more private investment. After years of inertia in talks, Macron said he is willing to make a deal with a smaller group of countries if the whole EU can’t advance.

In his introductory remarks, Macron told the audience that he will reprise his trademark pro-business measures in order to try to boost France’s economy further.

“We need an economic agenda for industry and innovation that is even more ambitious,” Macron said. “Everything we’ve done in recent years and the good results are not sufficient because innovation is accelerating and because there is an acceleration with” the US Inflation Reduction Act.

French unemployment has started to pick up again, and economic growth has slowed markedly, in contrast to a rapid rebound after the pandemic.

At the same time, the French leader has little room to boost public spending after a vast build-up of debt during the Covid and energy crises. Last year, Fitch Ratings downgraded France, and S&P Global has a negative outlook on its assessment of the country’s finances.

Macron’s appearance in Davos was his first since 2018.

French President Emmanuel Macron lays out vision of 'stronger' France amid far-right challenge.

Emmanuel Macron has promised a "stronger France" during a two-hour press conference, as the far-right National Rally grows in the polls.

The French president made a point of showing his leadership was firmly focused on law and order, migration and education.

Macron's series of reforms would start with an economic bill meant to boost growth and tax cuts for the middle classes.

But he also advocated regulating children's screen time, uniforms in public schools and learning the national anthem at a young age.

The 46-year-old centrist promised “audacity, action, efficiency” in the last three years of his presidency, already dogged by controversy.

'France to stay France'

Macron's speech was seen by observers as part of an attempt to strengthen his legacy and challenge the dominance of Marine Le Pen’s far-right National Rally, ahead of European elections.

He is seeking to move on from last year's controversial pension changes and more recent immigration laws, which some claimed showed Macron was bowing to the far-right.

Macron denounced the National Rally as “the party of the lies” in front of reporters.

He warned about the “danger zone” as voters across Europe were increasingly choosing the far-right.

“Basically, the National Rally has become the party of easy anger,” Macron added. “Let’s not get used to it.”

Macron vowed that his plans were for "France to stay France."

We must tackle issues that “make people vote for them,” he said, including fighting unemployment and better-controlling immigration.

Low-middle-income voters were the targets of his speech which also promised to boost businesses by reducing red tape.

He also detailed how he would preserve France’s struggling health system and accelerate changes at schools. He advocated for uniforms in public schools, learning the national anthem at a young age and expanding a two-week training period in high schools to promote French values and encourage youth to give back to the community.

With no majority in parliament, Macron suggested many of the changes could be implemented without passing new laws.

France on the world stage

“I still have three years and a half in office,” Macron said, describing an ambition to both change the daily life of the French and tackle global crises.

He promised to make France “stronger” to face global crises, announcing plans to deliver more long-range cruise missiles as well as bombs to Ukraine.

Macron also proposed a joint initiative with Qatar to mediate a deal between Israel and Hamas to allow the delivery of medications to around 45 of the more than 100 Israeli hostages held captive in Gaza.

France's leader also suggested that he’d find ways to work with Donald Trump in the event that he wins another presidency.