shooting, looting civilians are making their way back to goma with more than half a 1000000 people displaced by the fighting. the scale of the humanitarian emergency, the still emerging you're watching the w news don't go away. the in charlotte the currently more people than ever on the world wide and such a bed. nearby, facile jessica middle castle josh. find out about robina story info. mike runs the c b. he's ready to do whatever it takes to preserve the you or

whatever it takes. 3 words credited with saving the orders and collapse in 2012. but mario drag you the money set them recently took on an even bigger task, saving your, your ups, economic future. it may sound boring, but i promise you, it isn't. this isn't just about things like tar of sort g, d, p or interest rates. it's but some fundamental things which many people here in europe. i've come to take for granted prosperity, security, democracy recently really strong. you dedicates almost 400 pages to what sam or e. c be cheap. the central challenge facing the u. economy. the central message, europe is not productive or innovative enough. and if it doesn't take action now, it won't be able to survive, and the world was ever more hostile to us. in this episode, we speak to the same retarding prime minister enrico letter on the, your group,

president pasco, donor to other people. task was re making the you economy for the world and wasn't designed. we are either read aloud situation. we have tools, we have to act. i definitely think there's an awareness to monk flow for all over europe regarding to the degree to which the world is changing. and we ask one of the leading commentators in the global economy. lots of sticks. if the u comes of short list, really easy suspension for europe if he doesn't solve these problems, include literally collapse. welcome to business beyond the u. s. 5th. several defining questions over the last 15 years. the global financial crisis to the pandemic, to the war and ukraine. and as a re election to the us presidency of donald trump for a 2nd term has res. yet more existential questions for you or train, says you will put carrots on your pain. exports to the us,

particularly on industrial sectors like car making at a time when they're struggling. he has also repeatedly warranty you, nations, to increase their defense spending. one of the presidents of the country stood up said, well sir, uh if we don't pay and were attacked by russia, what do you protect us? i said, you didn't pay your delink, which you said, yes. let's say that happened. no, i would not protect you. in fact, i would encourage them to do whatever the hell they was. you got to pay, you gotta pay your bills. i think this is a very profound shift in the world environment. in my own view is that she's probably the most profound shift in the world environment of my lifetime. martin wallace is a former world bank economist who has been the financial times chief economic commentator for almost 30 years. he thinks from 3 election has fundamentally changed things for europe and everyone else. well, my own view, alas. and it's immensely tragic. i news that what advice really

is that trump's free election is going to approve a historic event, possibly in the reversible one. for 1st of all, the us itself and the way it operates, the us as a guarantor of security in the us as the country that created for as a defended the international liberal, broadly defined. that's clearly going to be radically different. and a part of that is a security relations, and part of it easy cannot make relations given what he has said, of a tire of some defense trunks. victory is forcing your up to confront some hard truths, but it's phone economic standing, particularly in relation to the us, but also in the world as a whole. using g d p, the standard measure of the value added to an economy through the production of goods and services. we can see has a gap between the size of the u. s. and e u economies has whiten since 2010 total

e to g d p. that represents less than 3 quarters of the us total 20 years ago, the u accounted for a quarter of global gdp just behind the us and way ahead of china. after that, both of us and the shares declined as china experienced a dramatic search. over the last decade, the u. s. chair has increased again while the use has been steadily declining. but beyond all the individual crises that the was faced, it was known for a while that as a bigger problem which it must handle. that's why it is compiled to major reports recently focusing on 2 economic areas. one, it's single marcus. i'm to, it's ability to compete in a world economy that's increasingly dominated by the us. i'm china. what's happened? these are sort of form of learned helplessness. it said they are aware that is a problem. and, and in driving was off status was in rico. let's uh,

resolves to investigate these issues because people know there's a problem. let's report on the drug you report. aim to guide you out of its current malays. to understand the aim of these 2 major documents we spoke with in rico, let's the ulcer of the letter report. he's a former italian prime minister and the current dean of my university school of politics, economics, and global affairs in madrid, spain. he says that europe has to re discover the true meaning of spare us, of it's much wanted single marcus. the idea is that we don't understand that the single markets is the tool jewel of do appear in the union is the scene to jen letter says the jack deal or the hugely influential, the president of the europe information from 1985 to 1995 told him before he died in 2023. that the you had lost sight of its guiding mission. the old ways told me

they are forgetting the importance of this integrity of the single, not good. they are old forgetting this importance, and she always asked us at the shop to institute to work of the single market, thinking that the single market these the to center of everything in a recent article, martin was listed. what he sees is the use man problems. the role the most important are fragmentation over regulation. inappropriate regulation, insufficient spending, and on june, conservatism of these fragmentation is the most damaging. this is the idea that the single marcus doesn't really exist despite the desire to create a single market to create a banking union. as an enterprise or financial system to create an integrated

capital markets, which imply of course, highly integrated regular trade system was across the continent across the u. so the instance businesses can operate as if you were, it was what the u. s. can be very, very far. from that, he says the clearest examples of this can be seen in banking, defense. we rescue banks, they will be rescue, buys, states, member states. they wouldn't be rescued by the you acting together because the u as a whole has almost no fiscal 5 out at all. so it's really, really how in this situation to think about europe from the point of view of the economy, a multitude economy as an integrated whole for enrico letha healing this fragmentation

is the central message of his report. we think that we are one as the us and as china, by the reality on too many economic issues. europe is just the geographic expedition. we're 27. and if we keep being 27, we would be, i would say the marginalized by the americans and the chinese, that is the main message. the new prides itself on for freedoms, the free movement of goods, services, capital, and people. but then recall that it says that it has been missing a 5th freedom of now is the time to set that, right? we missed the tangible, the digital routes. so the idea to launch these fees to free the visual knowledge, i do have everything related to this decision is for me from them in the decision the leaders agreed as amazing in budapest,

in november to work on the introduction of this intangible 5th freedom. agreeing and principal to a single market for research, innovation, knowledge, and education. a direct response to the letter and drive you reports. at the center of the drive, the report is a call for your up to become more productive. but it says that to do that. it needs to become more innovative and to become more innovative. that needs to invest since the financial crisis, investment rates in the us have it stripped those in the you in terms of private investment, the was ahead of the us until 2011. but the gap is white and significantly over the past few years for government investments. us on the rates of marriage, one another. but the u. s. has also remained, has the comparison matters because many your pain startups up to expand to the us rather than any, any business that sets up in america can regard the whole united states as

a total market. it's much more difficult for european business. the lack of a capital market union, for example, is one of the reasons that if you want to set up a style to up a tech, solve of it so much more sensible dues to get yourself funded in america. and then even move to america. the consequences are easy to see. here's the largest companies in the world by market capitalization. it's a list dominated by us for and you have to go all the way down to number 20 to find a your paying for the damage. pharmaceutical company noval nor just among the most valuable us firms are the world's leading tech firms. microsoft, a chip joined in video and they're worth in the trillions, not billions. your biggest firms are much less valuable. the most valuable is at the same level as the us is 17th or 18th, depending on

a day is given. rates and europe's biggest firms dealing more old fashioned consumer and health care products rather than in more innovative technological fields. the drug you report emphasizes repeatedly, but the most ramp of public and private investments. to even put an exact figure on the report states. to meet the objectives laid out and this report a minimum annual additional investment of 752800 1000000000 euros is needed. well, i think this is he waiting for a big number in the hope that they people would be so frightened by the big my number they would agree on the smaller one. i think he thought probably i haven't talked to him about that. and i have actually talked to him about report if he does for a smaller number, people say, well let's go for an even smaller number, but it's not just public money. the report outlines, but if your opinions invested more and saved less, it would go a significant way towards making up the shortfall. for leading the e. c. b numbers,

there's around $300000000000.00 euros per year. is the total amount of money coming from a european savings, leaving us to go to the us, the end up being invested in getting ready can market or buying because american market is more united beach and, and what the for me. so i started by saying, why don't we work to retain this big amount of savings in the roads, getting the possibility to when you have savers to invest them in europe, in europe, the savings tools that can give them that good to me, to europeans, save a high share of the g d p significantly more politically, the private people. how sold that in america with britain for that matter. and recall as i believe's, the private funding will help on lock public funding and the both are desperately

need as the we understand very well that to be resolves we need, we can get them only with public safety. if we are not able to mobilize private funding, it would be impossible. and to mobilize private funding. the only way is to create a single markets on financial services in your business, what we don't have today. and this is why i wanted to put this point that the center of to see bio drug is report lives out in stock detail. what the you needs to do in order to be able to compete with the us in china. but knowing what has to be done and actually been able to do is, are 2 very different things. political instability is a problem, including in the 2 main new drivers, france and germany, france as a 4 prime ministers in a year with president emmanuel and the crime looking increasingly weekend. germany

would hold elections next month after the previous 3 party government collapse. meanwhile, both countries have seen a significant rise and support for fire right parties as of several older nations. the, a lot of them said that nature knows best we're about to hear from a range of people who are figure that out and they're turning to nature. well, solutions not in the process that transforming problems into opportunities. well, welcome to echo africa. i muller mama coordinate in lieu, soc, has them the most cost and they goes by jerry, what my colleague chris ellen gives us a low down into west to come in today's show.