This energical crisis is showing the lack of strategy of the European Union. We need to invest a lot more in new technologies, and to prepare the future. In the XVIIIth century England invested a lot in the industrial revolution. The financial markets developed there. This ability to provide ressources very fast was a factor of the final success against Napoleon. That is the reason why it should be a top priority to invest in the technologies of the future. It concerns the monetary policy as well. For instance the crypto yuan created to compete with the dollar has shown that investing in a more efficient way of allocating ressources can be capital to exert monetary policy.
The fact the European Union is not investing enough in new technologies is showing a real problematic long run vision. However it is more than necessary to be competitive. Overdebt states, a lack of education policy, and a lack of real strategy in new technologies may risk to make Europe dependant on China in the long run. In my opinion it is necessary to inspire from the Chinese approach, that has the mentality of preparing the future.
Today many companies fear the lack of mathematicians, and think that it is necessary to invest a lot more in technical skills. At the same time the Chinese population is more and more qualified, and today the Chinese ingeneers are ten times more numerous than the American ones. A massive investment in education is making China likely to surpass the United States and the Western world in general in the mastery of high technologies. For this reason the investment plan 2030 presented by Emmanuel Macron is going to the right direction. However it is necessary to be more ambitious to that direction. In many ways the education system is falling apart, while more and more teachers are missing. It can create major issues in the long run in this process.
Investing in the environment can be a long term solution. The European Union is presenting projects to that direction. Many organisms exist, such as the Social European Fund. Anyway it is necessary to invest more in ambitious policies to this aspect. However the reality shows that those promises rarely come true, and they are pretty often empty announces. That is the reason why it is necessary to build an approach that can focus on different strategies. It is for instance important to rebuild an industrial policy, but focusing on the industries of the future. Some Middle East countries go to that direction. For instance the United Arab Emirates target to invest in education and in technologies of the future, as the ressources provided by oil are likely to decrease a lot in the long run.
Moreover it may be necessary to create more collaboration between public policies and start ups. For instance the Chinese regime often backs promising young entrepreneurs until they became giants. Of course those companies are compelled to provide informations and have to compromise with things we cannot do. However more collaboration between the state and private economy can be efficient to ensure long run success. That is one of the factors of the success of China those recent years. Often the alliance between the state and the private sector provides long term success, it the policy is well planned. The Roosevelt policy after the 1929 crisis is showing it.
Those factors show that the European Union should go back to long term strategies. Initiatives are being made to this extend. But it doesn’t look to be enough.
The observer 