Weakened EU Needs Bold Plan to Exit Crises, ECB's Villeroy Says.

Europe needs a plan to deepen its financial and economic unity in order to overcome the crises affecting its democracy and society, according to Francois Villeroy de Galhau, the chief of France's central bank. He suggests that a bold strategy could include a unified industrial policy and fiscal capacity, as well as a pan-European capital market. Villeroy emphasizes the importance of a Franco-German ambition and urges these ideas to be part of the debate leading up to the EU parliament elections in June. He warns of the risks facing the EU, including a potential recession and political parties seeking to dismantle the union. Villeroy also highlights the challenges of financing digital and green transitions and addressing aging populations. He suggests that a EU-wide fiscal capacity and an industrial policy with a cross-border strategy could help. Villeroy believes that most of the financing for these transitions should come from the private sector, but a Capital Markets Union led at the highest political level could facilitate this. He concludes by stating that Europe must overcome its feeling of powerlessness and move away from a short-term agenda in order to compete with the speed and assertiveness of the United States and China. [Extracted from the article]