Ladies and Gentlemen,

Thank you for inviting me to take part in this Davos event, at this gathering’s 50th anniversary.

The Green Deal for Europe and its financing

We have just listened to the speech by the President of the European Commission. As we have heard, the beginning of this new European institutional cycle has put the fight against global warming and the ecological transition at the center of its priorities.

In this context, on 11 December, a few days after her inauguration, the President of the European Commission, Ursula von der Leyen announced a roadmap for the implementation of a European Green Deal.

The concrete measures to support this roadmap were presented last week by the Commission and include major investments, funded in part by the European Investment Bank, with the support of the programs under the EU’s Multiannual Financial Framework.

The European Parliament, as co-legislator, will be called upon to discuss the Commission's proposals and modify the text where deemed necessary, in particular to ensure consistency between the diagnosis we all share regarding the climate emergency and the means employed to face it.

In this regard, the role of the world of finance, by identifying environmentally responsible investments, and of the European Central Bank, should be discussed without any taboos. We are delighted that Christine Lagarde has shown her willingness to start this discussion.
 
The fundamental question: the fight against inequality
 
Above all, I believe that the transformation that Europe intends to carry out to deal with the climate emergency means taking into account the social dimension and the fight against inequality, which must accompany this transformation. Indeed, environmental challenges can only be solved if we put the reduction of inequality at the center of political action. Climate challenges and inequality can only be solved together.
 
Indeed, inequality and poverty have multiple effects on our environment. Poorer families are less inclined to change their lifestyle in terms of waste reduction and recycling. Moreover, more egalitarian societies have a better environmental record and show a greater ability to become more sustainable. On the contrary, an unequal society in which large sections of the population live in conditions of poverty feeds the ecological crisis.
 
In reality, we are not equal in the face of the ecological crisis. Whether we are rich or poor, elderly or young, depending on where we live, influences how we are affected by the climate crisis. For example, the exceptionally hot and dry climate of last summer had a devastating impact on European farmland, reducing the crop of vegetables and increasing their price for the final consumer. This particularly affects low-income families, as food accounts for a large part of their monthly family budget. The ecological crisis is therefore aggravating the social crisis and the crisis of inequality.

Inequality is therefore an environmental issue, just as environmental degradation is a social issue. We must understand that ecological progress and social progress must go hand in hand and feed on each other. We cannot end poverty and build a fairer society by letting the ecological crisis destroy our planet. However, we also cannot end the ecological crisis while high levels of poverty and inequality persist.
 
Therefore, the transition towards the sustainable economy that we want to achieve cannot solely be viewed through the prism of promoting investment to transform our model of production.

Promoting a just transition

This is reflected in the concept of a just transition, which aims to accompany the change in our production model with corresponding social action.  In this regard, the "Just Transition Fund" presented by the Commission last week is an initiative that should be welcomed. However, the resources with which this Fund will be equipped do not seem to live up to the social changes that we foresee. The annual GDP of the EU is around 15,000 billion euros and with the recognition that measures to combat climate change will impose large costs on families, a Fund for a Just Transition of only 100 billion euros, distributed over several years, seems insufficient. In order to guarantee the political success of the European Green Deal, it appears essential to respond to the fears of those who will be most affected through compensatory measures. In particular, to support the creation of high quality and well paid jobs.

A necessary change in society driven by a renewed European project
 
In addition, we must establish a true socio-ecological governance from the local to the European level, which guarantees the participation of the whole society in the transformation of our model of production. This implies strong social dialogue at all levels and the involvement of local communities in the planning and implementation of public policies geared towards this process of transformation. It is a very ambitious social change and it is our responsibility to support it.
 
This change implies a fundamental revision of our way of considering economic activity and in particular growth, as opposed to the concept of overall well-being. The United Nations "Sustainable Development Goals" goes in this direction. Focusing and evaluating the results of policies on explicit welfare objectives rather than on abstract concepts such as GDP would allow citizens to engage in the transformation of our societies.
 
Finally, this transformation must be based on a new European narrative.
 
In Europe, we must become aware of our roots and our common destiny, developing an ethos going beyond the simple logic of economic profit, beyond simply a transactional model that leaves us at the mercy of our partners through commercial retaliation measures when our geostrategic goals are different. We must get rid of the "culture of waste" of which Pope Francis speaks, which obeys only profit. On the contrary, the European project we are building must strengthen the fight against poverty and help reduce inequalities; it must concern itself with the dignity of people, especially in the workplace, through fair wages.
 
I am convinced that responding to this environmental and social challenge will allow our continent to show the moral leadership which the world expects.