Has Macron broken France? - Yanis Varoufakis & Wolfgang Munchau | The Econoclasts

Summary

Yanis Varoufakis and Wolfgang Münchau argue that France and Europe are facing deep political and economic crises, which they connect to the failure of technocratic centrism and years of policy choices.

Macron’s legacy in France

Münchau says Emmanuel Macron began as a self-described reformer who promised to renew France and strengthen Europe, but leaves behind a country marked by social unrest, fragile public finances, and stronger forces on both the left and right. He argues that austerity—and especially cuts to investment—helped create long-term economic and social problems. In their view, Macron’s centrist politics failed to address competing interests or offer a convincing response to public grievances.

Why Macron’s project faltered

Varoufakis recalls that before becoming president, Macron appeared to understand the need for European fiscal and political union. He argues that Macron failed to secure a deal with Angela Merkel, then abandoned his original team and strategy once in office. Varoufakis also points to tax cuts for the wealthy amid widespread hardship, the diesel tax that helped spark the Yellow Vest protests, and Macron’s later use of language associated with the right.

Münchau similarly says Macron never seriously confronted Germany over fiscal union.

France’s political direction

Münchau expects further polarization, with gains for both Marine Le Pen’s right and Jean-Luc Mélenchon’s left. Varoufakis disagrees about who will benefit most: he believes Le Pen is better positioned to capitalize on Macron’s decline. He compares Macron’s legacy to Barack Obama’s, saying, “Obama created Trump. Macron created Le Pen.”

The EU and Ukraine

Varoufakis argues that European leaders’ current approach—providing support while avoiding direct involvement in the war or a serious push for peace—is hypocritical and unsustainable. He frames the choice as either committing to a much wider war, for those who believe Russia must be defeated at any cost, or seeking an immediate, difficult peace.

He warns that prolonged fighting will cost lives, strain European budgets, deepen political fragmentation, and strengthen far-right movements.

Europe’s limited influence

Both speakers say the EU lacks a credible plan to end the war. Münchau points to recent Trump administration actions affecting Ukraine, including restrictions involving Starlink and discussions about intelligence-sharing. He says Washington may impose a peace plan without Europe’s involvement.

The speakers warn that European leaders are wrong to assume that waiting for a future US administration will solve the problem; a weaker and more indebted Europe could have even less influence.

Financial pressures and interests

Varoufakis highlights the strain of financing Ukraine alongside EU budget commitments. He argues that some actors are profiting from the energy crisis and continued paralysis. Münchau also criticizes the prospect of relying on frozen Russian assets rather than finding a sustainable European strategy.

Presenters and contributors

• Yanis Varoufakis
• Wolfgang Münchau