Thomas Piketty, the influential French economist, has a clear message for Europe: it’s time to shake off self-doubt and step up with confidence. In his latest blog post for Le Monde titled “Regaining Confidence in Europe” (also in French: “Reprendre confiance en l’Europe“), he argues that the continent is far stronger than it gives itself credit for—and that it must harness this strength to build a fairer, more sustainable economic model.
Europe, he points out, has something the U.S. lacks: a steady balance of payments surplus. This is no small feat, especially when compared to the chronic deficits across the Atlantic. Yet instead of capitalizing on this economic resilience, Europe often falls into a cycle of self-criticism and inertia. Piketty urges European leaders to break free from this mindset and channel their resources into ambitious investments that improve people’s lives.
Key to his vision is ramping up public spending on vital infrastructure: healthcare, education, transport, and clean energy. These investments, he argues, are not just about economic growth—they’re about improving productivity and ensuring a higher quality of life for all.
On defense, Piketty acknowledges the necessity of military spending, especially in light of geopolitical tensions. But he warns against fragmented and inefficient national strategies. With combined European defense budgets that far exceed Russia’s, the real issue isn’t a lack of resources—it’s coordination. He advocates for a more unified defense approach and the creation of a European asset registry, which could help finance major projects such as Ukraine’s reconstruction.
Pointing towards Federalism?
While Piketty stops short of explicitly calling for a federal Europe, his proposals point in that direction, as they have consistently done in the past. His push for collective economic policies, shared investment strategies, and stronger financial mechanisms all suggest a move toward deeper European integration. In essence, he’s asking Europe to act like the powerful economic force it already is—and to shape a distinct model of prosperity that doesn’t simply mimic the U.S.
The message is clear: Europe has the means to lead, not just follow. But first, it needs to believe in itself. The logical next step? A call for a European Federal State, as the key to achieving what Piketty is proposing.