Macron on European Tech & Innovation

French President Emmanuel Macron engaged in a discussion with Niklas Zennström concerning the landscape of technology within Europe. During the conversation, Macron detailed the essential elements required to cultivate European technology companies capable of challenging the dominance of major firms based in the United States and China.

He emphasized that Europe must prioritize “funding, the unification of our markets into a genuine single market, regulations that support both privacy and technological advancement, and the development of European data infrastructure, including a European cloud and European-based technologies, to ensure independence,” Macron stated.

Zennström, the founder of Skype, currently leads the investment company Atomico. Given his background, Zennström did not adopt an adversarial approach during the recorded interview. His firm previously released its annual State of European Tech report and hosted a virtual event featuring the interview with Macron.

The report indicates that startups in France secured over $5 billion in funding during 2020. Macron highlighted several factors contributing to the growth of French startups, such as the French Tech Visa program, certain tax adjustments—including a flat tax on capital gains and the elimination of the wealth tax with the exception of real estate—and private initiatives aimed at enhancing diversity, like Station F and Ecole 42.

However, Zennström’s visit to the Elysée Palace wasn’t solely to review Macron’s accomplishments. Macron is focused on building a unified European technology environment that transcends national borders. “We require European investment, European solutions, and European expertise. Currently, we observe the presence of GAFA in the U.S., BATX in China, and GDPR within Europe,” Macron explained.

“We have established regulations, which is a positive step. However, we lack comparable companies of significant scale,” he further noted.

According to Macron, the foundation for this growth lies in European financing. Last year, the French government successfully encouraged institutional investors to increase their investments in more mature technology companies. He believes other nations should replicate this approach to facilitate the creation of more publicly traded technology businesses across Europe.

Earlier in the year, the French government announced a comprehensive support package for startups in response to the economic downturn. “This initiative has been adopted by other European countries,” according to a source with close ties to the president.

Macron’s ambition extends beyond simply serving as a model for other countries; he aims to establish himself as a leader in a cohesive European technology ecosystem.

“We need a fully functional European digital market. Presently, many entrepreneurs must navigate 27 different sets of regulations. Therefore, the upcoming directives—scheduled for release around mid-December—pertaining to digital services and digital markets are of paramount importance,” he said.

Nevertheless, the present economic crisis has revealed that European governments are pursuing their own individual stimulus strategies. Achieving consensus on significant economic decisions within Europe remains a challenge. It remains to be seen whether the same difficulties will arise in the development of European technology ecosystems.