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(pensive music playing)

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<v ->Jose-Manuel, it's a pleasure to have you here</v>

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at the European CFO conference of BCG.

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Thank you for being with us.

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<v ->My pleasure.</v>

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<v ->Europe is at the crossroads, right?</v>

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If you look at the dowry report,

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the testament of overregulation,

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and investments that we need to do,

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what is your current take on that situation?

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<v ->I agree, basically, that assessment.</v>

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And I believe we need to do much more.

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But you know, in democracy

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there is always an opportunity,

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if the companies, if the business,

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if the people in general,

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express their concerns,

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they will make the decision makers aware

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that some decisions have to be made.

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And I believe this time has come.

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<v ->Are we in a trade-off between sustainability and climate</v>

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versus competitiveness?

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<v ->I believe the trend will do something on climate change</v>

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will remain very strong,

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because in fact it's a substantial problem for our planet.

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But also, let's also do it in a way

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that our industry does not feel

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that they are put at a competitive advantage,

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and that our less-wealthy people

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feel that the pain is too high on them.

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So we have to recalibrate the climate transition policy

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with concerns of competitiveness,

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and concerns of equality, and justice, and social matters.

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If you don't do it,

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there will be a huge backlash against that agenda.

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<v ->And when you look at the different unions</v>

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that we already have, right?

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So we do have the monetary union,

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we don't have the fiscal union,

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we don't have the political union.

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And on defense,

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where would you think we are on the different levels

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of being united as Europeans?

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And where do we actually progress at the moment?

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<v ->For unfortunate reasons,</v>

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Europeans are going to do much more, in terms of defense.

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From my point of view,

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hopefully not in contradiction with NATO,

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but complementing NATO.

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So a stronger European security and defense identity

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as a pillar of the transatlantic alliance,

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this is happening.

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Another area that I believe it's critically important is

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financial markets union.

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Because that's one of the problems of our competitiveness,

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disadvantage with the United States.

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Our companies don't have the access

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to the depths of the financial markets

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that our partners in the US have.

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So that should be a priority.

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<v ->In the light of Trump's agenda</v>

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of "Making America Great Again," right?

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So we are talking, and discussing tariffs, and so forth.

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What do you think the immediate consequences would be

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when another tariffs come?

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<v ->I think the Europeans have to organize themselves,</v>

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and speak with one voice with our American friends,

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and say, look, this will have very negative consequences

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in overall relationship.

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You cannot ask us, for instance,

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to have common geopolitical positions

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on some delicate matters,

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and afterwards punish us with tariffs.

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Ideally, that could make

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the new American administration to think again,

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and at least to exclude Europe

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from some of these tariffs that they are planning.

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If we don't succeed,

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and there is a high possibility that we don't succeed,

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in convincing new administration

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to avoid these tariff measures,

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Mr. Trump said recently,

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"The most beautiful word in the dictionary is 'tariffs.'"

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(Jose-Manuel laughing)

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If we don't convince him, in that case,

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Europe has to take retaliatory measures.

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Which is unfortunate, but there is no other way.

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So the possibility of a trade war, today,

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is a very serious possibility.

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<v ->Final question, short one,</v>

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the current situation and the ambiguity:

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Rather a crisis or rather a chance?

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<v ->Crises are opportunities and chances,</v>

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and this type of crisis,

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[it is] opportunity for Europe.

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Why?

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Because it forces us to make some decisions.

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In Europe, by definition, because we are 27 countries,

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we're not 1 country,

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the temptation is to procrastinate,

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to find some kind of middle ground,

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and not to take a decision.

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And now some of these trends are so dramatic,

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that they will most likely force us to take a decision.

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Let's hope it'll be the right one.

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<v ->Jose-Manuel, thank you very much for being with us.</v>

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<v ->Thank you.</v>

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(pensive music playing)