Lorenzi warns of economic conflict and unplottable solutions: ‘world without bearings’
Prominent French economist warns that Europe must reach strategic pact with Beijing and enact structural reforms as global order enters volatile era
The global order has lost the structural anchors that once ensured stability, entering a volatile period of economic conflict with “no obvious solutions”, the head of a prominent French economic think tank has cautioned.
Reindustrialising “is far more difficult than it was 30 years ago”, said Jean-Herve Lorenzi, president of Le Cercle des economistes, which organises France’s flagship annual economic forum, Les Rencontres Economiques d’Aix-en-Provence. “If we had each defended our own countries’ interests more back then, it would have worked out better.”
Lorenzi contended that major European powers must reach a strategic agreement with China in which Beijing recognises that Europe cannot allow its industrial base to be hollowed out completely.
He stressed that the West’s deindustrialisation was the result of its own deliberate policy choices, as Western nations outsourced manufacturing to China decades ago to slash production costs and boost consumer purchasing power.
Lorenzi’s warnings came days before the Aix-en-Provence forum’s 26th edition, which begins on Thursday. With an ageing population and high quality of life, the European continent faces demographic headwinds that may hinder its push for innovation.