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POLITICS

Macron says Europe must not be ‘follower’ of US, China on Taiwan

French President Emmanuel Macron said in an interview published Sunday that Europe must not be a "follower" of either the US or China on Taiwan, saying that the bloc risks entanglement in "crises that aren't ours".

Macron says Europe must not be 'follower' of US, China on Taiwan
Emmanuel Macron gestures as he speaks to students at Sun Yat-sen University in Guangzhou on April 7, 2023. Photo: LUDOVIC MARIN/AFP

His comments risk riling Washington and highlight divisions in the European Union over how to approach China, as the US steps up confrontation with its closest rival and Beijing draws closer to Russia in the wake of its invasion of Ukraine.

“The worst thing would be to think that we Europeans must be followers and adapt ourselves to the American rhythm and a Chinese overreaction,” Macron told media including French business daily Les Echos and Politico as he returned Friday from a three-day state visit to Beijing.

Citing his prized ideal of EU “strategic autonomy”, the French leader said that “we must be clear where our views overlap with the US, but whether it’s about Ukraine, relations to China or sanctions, we have a European strategy.”

“We don’t want to get into a bloc versus bloc logic,” he added, saying Europe “should not be caught up in a disordering of the world and crises that aren’t ours”.

China views democratic, self-ruled Taiwan as part of its territory and has vowed to take it one day, by force if necessary.

Angered by Taiwanese president Tsai Ing-wen’s meeting last week with US House Speaker Kevin McCarthy, Beijing launched massive military exercises around the island immediately after Macron departed for France, including simulated strikes on its territory.

‘Ambiguity’

Macron discussed Taiwan with Chinese leader Xi Jinping on Friday, during a visit in which he was feted but more hawkish EU Commission President Ursula von der Leyen was kept mostly at arm’s length.

His Elysee Palace office said the talks had been “dense and frank” and that the French president was concerned about “growing tensions in the region” that could lead to “a terrible accident”.

Macron was “simply talking about the risk of Chinese ‘overreaction’, forgetting China wishes to change the status quo by taking over Taiwan one way or the other,” Antoine Bondaz of the Paris-based Foundation for Strategic Research (FRS) commented on Twitter.

“Why this desire never to recall we have an interest in maintaining stability?” he added, warning that “this ambiguity… instils doubt in our like-minded partners”.

Taiwan island was just one area that risked “an acceleration of tensions breaking out between the duopoly” of China and the US, Macron said.

If the confrontation escalates too quickly, Europeans “won’t have the time or the resources to finance our strategic autonomy and will become vassals, whereas we can build a third pole if we have a few years,” he added.

Europe’s emergence as an independent geostrategic player has been a goal of Macron’s for years, in line with a tradition going back to Fifth Republic founding president Charles de Gaulle who saw France as a balancing power between the Cold War blocs.

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ECONOMY

S&P downgrades French credit rating in blow to Macron

Ratings agency Standard & Poor's downgraded France's credit score on Friday citing a deterioration in the country's budgetary position, a blow to Emmanuel Macron's government days before EU parliamentary elections.

S&P downgrades French credit rating in blow to Macron

In a statement, the American credit assessor justified its decision to drop France’s long-term sovereign debt rating from “AA” to “AA-” on concerns over lower-than-expected growth.

It warned that “political fragmentation” would make it difficult for the government to implement planned reforms to balance public finances and forecast the budget deficit would remain above the targeted three percent of GDP in 2027.

The S&P’s first downgrade of France since 2013 puts the EU’s second-largest economy on par with the Czech Republic and Estonia but above Spain and Italy.

The announcement will sting for Macron, who has staked a reputation as an economic reformer capable of restoring France’s accounts after low growth and high spending.

The risk of a ratings downgrade had been looming for several quarters, with the previous “AA” assessment given a “negative outlook”.

The surprise slippage in the public deficit for 2023 to 5.5 percent of Gross Domestic Product (GDP) instead of the expected 4.9 percent did not play in the government’s favour.

France’s general government debt will increase to about 112 percent of GDP by 2027, up from around 109 percent in 2023, “contrary to our previous expectations”, the agency added.

Responding to the downgrade decision, Economy Minister Bruno Le Maire reaffirmed the government’s commitment to slashing the public deficit to below three percent by 2027.

“Our strategy remains the same: reindustrialise, achieve full employment and keep to our trajectory to get back under the three percent deficit in 2027,” he said in an interview with newspaper Le Parisien, insisting that nothing would change in the daily lives of the French.

Le Maire claimed the downgrade was primarily driven by the government’s abundant spending during the Covid pandemic to provide a lifeline to businesses and French households.

The main reason for the downgrade was because “we saved the French economy,” he said.

Government critics offered a different rationale.

“This is where the pitiful management of public finances by the Macron/Le Maire duo gets us!” Eric Ciotti, head of the right-wing Republicans party, wrote on social media platform X.

Far-right leader Marine Le Pen called the Macron administration’s handling of public finances “catastrophic” and denounced the government as being “as incompetent as they are arrogant”.

A credit downgrade risks putting off investors and making it more difficult to pay off debt.

Earlier this year, influential ratings agencies Moody’s and Fitch spared handing France a lower note.

S&P also maintained its “stable” outlook for France on Friday on “expectations that real economic growth will accelerate and support the government’s budgetary consolidation”, albeit not enough to bring down its high debt-to-GDP ratio.

“S&P’s downgrading of France’s debt simply reflects an imperative that we are already aware of: the need to continue restoring our public finances,” Public Accounts Minister Thomas Cazenave wrote in a statement sent to AFP.

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