is that germany's reluctance to borrow big exemplified by a constitutionally and try and limits known as a debt break, is holding that. nothing can happen here without germany. and it's clear and germany will have to take the lead and it will have to be willing to do things that germany's historically imposed concerned about common borrowing a share in common borrowing, common or revenue is, is well known as the debt break, which i think will clearly have to go, it's probably going to be part of the debating the germans election. he thinks a fresh approach from a new german government could provide you with a lifeline. if the german government came forward and say this isn't a bulk of change, we have to be to show the sort of ambition we did in the when the you about the see is it was, were found it, uh,

it was actually the european color steel community was founded and then be seen in the fifty's, the single market and the single car. and so they go to have to show a willingness to do that sort of thing. and recall letter wants to see your forge of close or single market and 3 specific areas, energy, telecoms and financial services. he believes a lot can be done in a short space of time without the need for changes to existing the treaties. the be and of course of age and the phone will be due at the beginning of the war, the russian aggression to reclaim demonstrate that in, within, due to a pm the at reduced. there are a lot of tools that we can use to avoid. and we see complicated discussions on the on preview changes and we have not to open the front door to adults depend on a box of truth the changes because otherwise it would be possible to be a successful. and it's clear that some thing decisions have to be made here in

brussels and across the you are being consummate. to consider some of the key questions on the issues involved. we spoke with passcode on the who is the president of the oral group, which is the collection of the 20 finance ministers which make up the euro is on euro group, president pasco, don't know. thank you very much for speaking to us here on business beyond not at all device to be on your program. now i believe this is the 1st gathering of the oral group since the re election to the presidency in the america of donald trump. my 1st question to you today would be, is your up ready for trump 2.0? so i believe europe will be ready for from 2.0 because we have a track record of being able to adjust to really big strategic developments that takes place south fire in the world. but we do have work that we need to do. we need to deepen the foundations of the euro with regard to capital markets with regard to banking union. and we also need to look at what further steps we can take to deepen the competitiveness of the european union. as we furnish and develop

a new relationship with united states, we need to do it from a position of grace of strength than we have at the moment. i definitely want to get into some of those issues of the letter, but just to step back a little bit and we look at events all over the world over the last sort of 5 to 10 years. the world has gotten a lot on friendly or all of a sudden, i mean, we can look at russia, we can look at china, it's a different strand of issues, but nonetheless, considerably less friendly to europe as of perhaps, was in the past. and that indeed are one of our closest allies, the us. there's a lot of uncertainty, as you've alluded to in that relationship. so when you look at the you and how it's structured, particularly from an economic perspective, is a 1st say that the wasn't built necessarily for this type of a new world that we're in. so d e u is a collection of democracies at sometimes those take longer to adjust to big developments then, or the forms of political governance. but a consequence of our decision making though with staff when we do make decisions, they are resilient, they hold that we have the ability to take big decisions over time. so i think this

note as adult don, all of the change that we've seen happen even in recent weeks, from what's happening in america to what's happening in the middle east. those reminds me that there's a volatility in the world that we haven't seen for some time. but i would argue though, that's the policy still has big benefits, particularly if you're a collection of democracies as the you with. and i'm confident that we will be able to advise to the challenges that i know developing at some stage. and we can talk, for example, about some of the, the, my new shell said the issues that the trump presidency could bring and such as tire . so we could talk about more general economic teams like inflation and so on. but the list here have been aware for a while that some of these problems that are mounting or go beyond these relatively short term issues. and for that reason, there's been 2 big reports commission this here, the letter report i was looking at the single market and then the, the drawing a report on competitiveness. why do you think these reports are so necessary and what have you as you own group president,

taken from the so they are so necessary because all the things, all the tennessee that you described already of on we can see big changes that are taking place in europe as much of which is due to the consequences of the war. i was also ha, happened with the cost on the availability of energy. but in addition to all of that happening, we've very big global developments taking place. as we see, other products of the world from china to india to america has changing their economic stands. and we've also seen that economic growth in recent years continue to be very strong on the medium term economically look also continue to be very strong. so these pieces of work reassessing for europe stands in the world, and part of the euro area stands from the world. we're responding back to the changes that we've seen taking place in terms of what we're doing with into your

group with regard to this by highlight, 3 pieces of work. firstly, wireless device budget policy for the you are aware area i'm from member states of to your away area to get the balance like between half and safe public finances, but investing in a future. second, it's the work that we have on the way would work out the capital markets union, which has taken time. but we shouldn't underestimate the ability of continuing to make decisions in this area, but maybe, etc, racing the pace of stock decision making. so that we can deepen and integrate our capital markets within the euro area under your group has done a lot of work on this. and then find the i would argue that the digital future of the euro is also of a strategic response back to the way in which we see the global economy beginning to change is on the topic of voice decisions. mean we get onto the drive here report. now, one of the big headlines from the driver report was, is, as mentioned in the figure of an extra $800000000000.00 euros

a year that's needed in his view for the you to catch up. and some of those areas that you've touched on, whether it's innovation and sort of digital innovation and entrepreneurship, essentially to try and catch up with a considerable gap. that is no emergency and you are paying companies and american companies and, and the chinese companies do you think the you can come up with that kind of a figure and how do you think it could do this? yes, i believe we can. and i believe there's 2 ways in which we will do us. firstly, it will go back to the opportunity that is there regarding a private savings with into your opinion, on how we can coordinate them in a way that delivers a better benefit for your opinions on for the european union. if you have a look at how many other parts of the world have managed investment needs that they have. you seen that make far smaller to use of the savings on investment phones of their own systems. then we've been able to do in your opinion. so that is a big part of jot that jake saw on the or the part of the jigsaw would then be

decisions that we make regarding funding the budget of the your opinion. and the willingness of member states to look at new forms of public funding. that deliver your a pain public or so, in other words, your paying collective benefits. and that will be a big part of the negotiation for the next budget of the european union as some of which will involve choices regarding priorities out what areas are going to be more important in the years ahead than they have been in the years that have gone by, orders will, on day, shouldn't be involved with debate regarding fight. so there is a need for new economic instruments. and we have viewers from all over the world. and you already alluded to this earlier that those cold parts of the world, for example, and india, indonesia, what sometimes referred to as the global. so it's an older countries all over the place where they will look at europe and they look at europe and companies and they will just think that's yesterday's world that's. that's a different type of world. the world's changing as you, as you handle that in many ways. why should they look at europe now and think what actually know that's going to be tomorrow's world as well?

that's, that's an innovative place that can, that we need to be, have our stick. and as well as the world changes, but we need to give some further reason to believe stuff at the perception and views of different parts of the world absence flows have. but when you're dealing with a perception issue, i think you need to look at a level beyond dot and say, what's the substance. what we need to do is look at what are the policy decisions that we need to make that would build on the success that we have, that in turn will allowed a view of europe to be re caused by other parts of the world. so from my point of view, at our ability to fix a perception issue will only be delivered when we address the substance of the issues that is causing the other parts of the world. to look at you are a bit more classical way. and the way in which we will do us is by decisions that we can make ourselves, that i believe we can make an over the next one to 2 years to make these decisions

. obviously, we need governments working together, but we also need populations working together. and this comes at a time when you have significant discord in the countries you have. for example, i've mentioned friends have mentioned germany, a lot of support there for fire right movement. it's not impossible to imagine, for example, marine the pen as the future president of france is not impossible to imagine the if the in germany getting a significantly larger share of the vote. we see what's happening in romania at the moment where a fire i've, canada has been doing very well and elections there. how can, can you, or stay united on some of these issues when you have this sort of populism rising in all across the concept by pointing to the benefits of the european union and making the case for a contemporary rationale for the european union. and for europe in a political and economic integration, which is to simply say that because the opportunities that we face and the challenges that we face are so big that no one european country on their own is capable of rising to them. and we can achieve more together by acting collectively

. and if we don't talk to collectively, the national loss will even be great sir. so for me, this is the practical argument to be made regarding the role of the european union . i can make many arguments about the political body of, of us about the optimism office. i can make many arguments about our historical background apply. we're showing a very different way for europe in its future versus where we have been in our past . but for many, we need to make a more practical argument out of time of population and of the time of division and practical argument data. so as i said that because the change in the world, the so big, no one country can vice to with on their own, about how big they are in your pass code on who present as your group. thank you very much for joining us today. i'm telling you that on which in your opinion is a complex and diverse place. 27 different national governments and economies. a kaleidoscope of cultures and languages, and a wide range of different political and legal systems. for most of the postwar war

to harder, your opinion is found a way not just to stick together, but to thrive together. you have to secure its future. the you must bind these threads together more tightly than ever. at a time when their frame can be seen all across the continent, visa civilizational questions and not just about the way that people live from day to day. europe is going to be challenged to be able to stand up for it so and to provide a decent living for it citizens and the hope for the future, for it citizens, there's losing between towards that would be crucial. and the towards our competitiveness and security. if we are not able to integrate the 3 sectors that booked at the center of my report and a g telecom at financial services, it would be impossible to be secure. and at the same time,

to be competitive. the world has changed dramatically in the last 10 years, and many europeans are beginning to feel that a global order, which is 7, well, for a long time, is beginning to turn against the states and the you to get, i could disintegrate. you call assume that what we use to we lost, that's what a history tells us between the european history of a 20th century is if you make really big mistakes, things can collapse, complete slate. the you dream to collapse and our economies could collapse. and then the future becomes varied and very unpredictable. in 1999, the year the berlin wall fell check. delores said the following. europe will never be built if young people do not see it as a collective undertaking that will shape their future. nearly 4 decades later, the confidence leaders faced the same problem. europe st.