At 10,000 feet above sea level, on the morning flight connecting Madrid and Frankfurt on November 15, a thirty-year-old concentrates amid turbulence and a wind that hits the fuselage and shakes the device as he reads the best-seller “The New ” reads York Times: The Warren Buffett Method. The secrets of the largest investor in the world (Hoepli-Verlag, 2022). The plane flies at 900 kilometers per hour towards the European financial capital. Where the sun is reflected in the (somewhat old) glass architecture of the European Central Bank (ECB) and the strong DAX index is listed.
The consulting firm McKinsey, LA, organizes its annual meeting with the press and EL PAÍS was among the invited media. Even CNN reported on the meeting at the JW Marriot Hotel. On the agenda is a look back at the Europe of our time. Its infinite promises, its infinite contradictions. Three ideas for panels lasting several hours. European competitiveness, sustainability and of course generative artificial intelligence set the pace. However, a surprise awaits the Spanish and Portuguese journalists outside the program – geographical Iberia in mind. The panels follow one another with the inevitable discourse on the immense possibilities of AI, robotics, the need for public-private collaboration, chip manufacturing or the urgency of attracting and retaining talent. Under the strength of being the third largest economy in the world and representing 14.55% of the world’s wealth (GDP). Maintained in a European Union with 40% women.
This is human geography. However, either there is a radical change or we could become, as Ana Patricia Botín, president of Banco Santander, explained on a British channel, “into a museum”. The answer involves two intangibles: optimism versus pessimism. “That’s a sentence I’ve heard before,” says Sven Smit, president of the McKinsey Global Institute (MGI). “This is not a new narrative and we are far from becoming an outdated space, but we must work very hard to prevent this,” he warns.
His proposal has a journalistic echo, to change history together and see the Old Continent as a place that offers “clean energy at reasonable prices”. And technology. “How many regions of the world can write these lines?” he claims. “Education is failing us because some people haven’t done their homework.” [actualizar su formación]. We have a high population density and that guarantees that talent is created.” Also valuable raw materials and environmentally friendly processing industries.
Of course we have Schrödinger’s famous cat in the box. Smit undoubtedly believes he is alive. “How many people would not be willing to telework from Spain, Holland or Germany? We have to take advantage of it,” he suggests. “Europe can be home to the best companies and the best automation. It’s very easy to create a negative narrative, but my narrative is the opposite,” he defends. There are always complications. “Isn’t California complaining about Texas’ tax advantages?” he asks. It is certainly easier to manage a federal government than 27 different states. “We live in a time of technological learning.” Perhaps that is why there is neither Meta nor Amazon in the EU. However, energy dependence on foreign countries has decreased somewhat.
Access to capital
Maybe we should replace the euro as a currency with optimism or hope. “In recent years, more than 200 global investment funds with a sustainable or green focus have emerged,” says Martin Linder, partner at the consulting firm. The word sustainability is one of the most frequently heard. It jumps from one side of the room to the other like an impossible-to-catch goldfinch. “We have great startups and innovative companies that can be leaders in this space.” Of course, easier access to capital is missing. “Because the talent is at home. However, we need to focus more on the global south,” admits Anja Huber, also an associate from Munich. “Investors also rely heavily on ESG criteria.” [medioambiente, sostenibilidad y gobernanza, en su traducción al inglés]“. The first approaches of the European Green Deal?
The afternoon discussions come and with them artificial intelligence. It raises all the familiar doubts about privacy, information distortion or risk to the most vulnerable. And this is where business interests and the human condition mix. “All major companies are interested in this technology,” says Ruben Schaubroeck, another partner at McKinsey.
This idea runs through Europe. You just want to ask: Is it good or bad? Does it improve human life or worsen it? This is a different book than Buffett’s and more complex. “I believe in the need for curiosity and, above all, useful thinking,” summarizes Eric Hazan, the firm’s French partner. Behind it – while the expert speaks – a background current runs. Any technology, even if the numbers are correct and technically feasible, should be rejected if it does not serve to improve the existence of all people. Of course, no one doubts that the pressure on companies to comply with the regulations will increase. The plane lands in Frankfurt, the boy keeps the book and perhaps that night he dreams of a 90-year-old billionaire who accumulates so much money that without it it is impossible to explain the inequality that the world suffers from. Times of golden idols at 10,000 feet.
Iberian market
Years ago, the Nobel Prize winner for literature, José Saramago, proposed the idea of a great Iberia. The unification of both countries. The author would have liked the idea. It’s a stage. A Saramagist proposal in which all the pieces of the puzzle must fit, although some seem too complicated, such as the harmonization of a common European regulation. The idea is to create an energized Iberia in the face of the green transition. Two countries with a unique vision facing the challenge of net zero emissions in 2050. Spain should invest 2.5 billion euros – according to the consulting firm – and Portugal 0.5 billion euros. If this sector is to contribute between 10 and 20% of the country’s GDP, more than one million skilled jobs would be required in 2035. The aim is to reindustrialize the peninsula (green steel, batteries, sustainable aluminum…) and to further promote renewable energies or the still young green hydrogen. “There is a need for long-term stable, clear and durable legislation,” emphasizes José Pimenta da Gama, senior partner at Mckinsey in Madrid and Lisbon. “It’s a way to reindustrialize and grow our countries,” he says. He admits that this is a “scenario” for now and that it has not been presented to any position in the administration. He doesn’t like the tax on electricity companies, which is not surprising, but the timing is: Portugal has called new elections for March 10 and Spain is trying to shape its complex state structure. “The opportunity is now and it is time to act. We have to implement it, and do it well,” emphasizes de Gama.
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