Jean-Philippe Desmartin, Head of the Responsible Investment Team
We don't know when the Trump & Co. whirlwind will end. No one knows, and neither does he. Perhaps with the next US midterm elections in November 2026. In the meantime, the set of decisions taken has the immense merit of waking up Europe, and first and foremost, the European Union. Without waiting for Donald Trump to return to the White House, the old continent has been offered the roadmap for its economic revival set out in the Draghi report published in September 2024.
The challenge for Ursula Von der Leyen, President of the European Commission, who commissioned this report as a guiding frameword for her 2nd five-year term, is to ensure its active application and implementation rather than mere acceptance The Draghi report lays out a coherent triptych for revitalizing the EU's economic competitiveness: Innovation, Decarbonization, Security. This report, or at least its summary, is a must-read. As in many other current debates, misunderstanding and even “fake news” are the order of the day. Although there is legitimate criticism of the red tape involved in the green deal strategy launched in 2017, sustainability remains a key issue for European economic competitiveness.
The report effectively emphasizes decarbonization (the environmental pillar) and training and development for individuals (the social pillar), both crucial elements in restoring competitiveness. It's also worth noting that the 3 themes of Innovation, Decarbonization and Security should not be approached in silos, but as part of a virtuous cycle. Let's take a concrete example. The Schneider Electric industrial group, world leader in electrical equipment, smart grid solutions, datacenters and automation, invests heavily in R&D (1.3 billion euros in 2024, or 3.4% of its sales) to stay at the cutting edge of technology. This innovation serves our customers and supports the structural shift towards electrification, a key driver of decarbonization. Moreover, the increasing electrification in Europe plays a pivotal role in enhancing the continent's energy independence and security.
In short, long-term investors should consult this report to identify key economic segments for the coming years, such as the technological frontier, electrification and access to resources. Enjoy your reading!
Summary:
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