WINTER 2018 THE STATE OF EUROPE #EUROPEMATTERS REPORT In association with incorporated WINTER 2018 THE STATE OF EUROPE #EUROPEMATTERS REPORT This report reflects the roundtable rapporteurs’ understanding of the views expressed by participants. These views are not necessarily those of the organisations that participants represent, nor of Friends of Europe, its Board of Trustees, members or partners. Reproduction in whole or in part is permitted, provided that full credits is given to Friends of Europe and that any such reproduction, whether in whole or in part, is not sold unless incorporated in other works. The European Commission support for the production of this publication does not constitute an endorsement of the contents which reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein. Rapporteur: Paul Ames Publisher: Geert Cami Director of Programmes and Operations: Nathalie Furrer Senior Events Managers: Laetitia Garcia Moreno & Sara Dominguez Senior Manager Membership and Partnerships: Natasha Ibbotson Programme Manager: Antonia Erlandsson Programme Assistants: Elisa Abrantes & Chahaiya Pilkington Photographers: Francois de Rib, Philippe Molitor & Frédéric Swennen Design: Elza Lőw © Friends of Europe - December 2018 5 TABLE OF CONTENTS ABOUT #EUROPEMATTERS 7 EXECUTIVE SUMMARY 9 STATE OF EUROPE #EUROPEMATTERS 10 Turning the tide 11 Give me your industrious, your educated, your tech-savvy masses 15 Into the void 19 The Welfare State update 23 Economic deliverables 27 Brand Europe 33 Recommendations: How do we make Europe matter? 37 THE PRESIDENT’S GALA DINNER 42 ANNEX 1: PROGRAMME 46 ANNEX 2: LIST OF PARTICIPANTS AND OBSERVERS 54 About #EUROPEMATTERS | Autumn 2018 7 ABOUT #EUROPEMATTERS #EuropeMatters is a 12-month project bringing together business leaders, policymakers, civil society representatives, foresight experts and citizens to co-design a Europe that still matters in 2030. This exercise takes place at a crucial moment: 2019 will see the election of a new European Parliament and the arrival of a new college of Commissioners. #EuropeMatters will put forward a pathway and a set of policy choices for the incoming EU leadership. In order to think ahead and plan for the future we want, we initiated #EuropeMatters to reinvigorate the relationship between citizens and the European project and to create a matrix of the options, choices and consequences for Europe. We will launch a report in January 2019, containing a call to action ahead of the European elections and our collectively crafted policy recommendations for the incoming European leadership. We’ll then engage with Europe’s key political actors throughout the run up to the European Parliament elections, as well as with the new College of Commissioners. Our objective is simple – to mobilise a coalition of the willing united by their belief that #EuropeMatters and to together ensure that Europe is better prepared to take strategic action to align the future we face with the future we want. A u s t r i a n P r esi d e n c y o f t h e C oun c il o f t h e E U #eu 2 018 a t Programme of the Austrian Presidency www.eu2018.at /EU2018AT @EU2018AT Our motto: A Europe that protects Our priorities: During Austria’s six months at the helm of the 1. Security and the fight against illegal Council of the European Union, we focus on migration topics where the Union must demonstrate that it Finding sustainable solutions to the challenges can deliver. Developments in recent years had a of security and migration remains a major negative impact on the trust in the Union’s ability challenge for the EU and its Member States. It is to act and to guarantee peace and security. The of utmost importance that the EU is able and Austrian Presidency works to improve trust on capable to act. Significant progress has already all levels – citizens’ trust in the EU’s capacity to been achieved but further efforts regarding the act, mutual trust among the Member States, and protection of external borders, fighting terrorism trust in the EU as a reliable and stabilising force and preventing radicalisation are necessary. in the world. These challenges can only be successfully met We believe that these are goals that allow us to if we work together on the European level, and find common ground between Member States, improve our cooperation with partner countries. but also between EU institutions. As Council Presidency, Austria acts as an honest broker 2. Securing prosperity and and will strive to find durable compromises on competitiveness through digitalisation key proposals that are important to European The EU is still one of the leading trading powers citizens. Therefore, the EU’s ability to provide as well as the biggest single market in the world. effective security is the focus of the Austrian The digital transformation is a powerful Presidency, based on three pillars: Security and development, which has to be used to secure migration; prosperity and competitiveness our prosperity and competitiveness, as well as through digitalisation; and stability in the the sustainability of our economy. It requires the European neighbourhood. right conditions for European businesses to thrive and innovate. We need to ensure a level Our approach: Subsidiarity playing field, which includes a European response to the dominant position of global Austria’s approach in all these efforts is based internet corporations. on the reinforcement of the principle of subsidiarity. This principle has not always been coherently and effectively applied. Austria 3. Stability in the European believes that the EU has to focus on essential neighbourhood – EU perspective of the issues and challenges, where common solutions Western Balkans/South Eastern Europe are necessary. At the same time, the Union has The EU will only be able to guarantee security if to take a step back on smaller issues, leaving our neighbourhood is stable and prosperous. room for regional and national solutions – and, Austria therefore advocates for a concrete EU by doing so, live up to its own motto “United in perspective for all Western Balkan states based Diversity”. On the basis of the recommendations on clear criteria relating to their individual of the “Task Force on subsidiarity, performance. This is and will remain a priority for proportionality and doing less more efficiently” Austria. We will build on progress achieved in Austria will lead a debate on how to better recent months and support all efforts for a implement the principle. continued integration of the region in the European structures. Executive Summary | Autumn 2018 9 Executive Summary Opportunity knocks? How Europe can emerge stronger from today’s troubled times Even with the gloomy world news, there was responses to climate change, international a cautiously optimistic buzz at 2018 State trade, defending human rights and democratic of Europe. values. Enhanced bonds with friends in Asia, Africa, the Middle East and elsewhere could Many of the 200 influential figures attending bolster a global Europe. the 15th edition of the annual roundtable were convinced that Europe not only matters, but is To maintain its role as a champion of values well positioned to bounce back stronger from abroad, however, Europe needs to defend its current malaise to upgrade its international them at home. role and rebuild support at home. The 2019 European Parliament elections That was despite a new Friends of Europe will be crucial in gauging Europe’s ability to opinion poll showing 49% of EU citizens believe stem the tide of populist politics. To win back the European Union is irrelevant and 64% are voters, Europe needs new policies to ease not convinced that their lives would be worse concerns over migration, promote innovation off without it. and inclusive growth, and re-write a new social contract that ensures a sustainable As the United States retreats from its traditional welfare state for the 21st century. role defending the international order, participants called for Europe to step into the void, taking a lead in upholding multilateral STATE OF EUROPE #EUROPEMATTERS Truning the tide | Winter 2018 11 Turning the tide Europe faces a challenging 2019. There are threats “Welcome the gift of of a chaotic Brexit and an Italian assault on the euro, the elections in May. prospects for a populist surge in May’s European Parliament elections and fears the European Commission They want to fight will be studded with appointees opposed to basic about Europe, let’s take concepts of European integration. that, bring it on, let’s Next year could also mark the start of a fightback. have that fight with them, let’s win it” “We need to stand on the barricades and defend European values,” declared Alexander Stubb, former Ricken Patel, Prime Minister of Finland and one of the EPP’s Ricken Patel, Chief Executive Officer and Founder, Avaaz Spitzenkandidaten. “If we don’t do this and we start moving towards an illiberal Europe, it’s going to be very difficult to come back.” Calls for a fightback also came from Ricken Patel, President and Executive Director of Avaaz, a platform for online activism. “Welcome the gift of the elections in May. They want to fight about Europe, let’s take that, bring it on,” he said. “Let’s have that fight with them, let’s win it.” Patel promised that Avaaz would be 100% involved in the election campaign. 12 State of Europe - #EUROPEMATTERS “If you want to solve “The far right is an opportunity, it’s a gift … we could something at a national not ask for a better opponent than these ridiculous con- artists,” he said. “This is the opportunity to build the level, you often need a Europe that we’ve dreamed off and the moment is now.” European solution” He stressed the dangers of dealing with disinformation campaigns in support of the far right and urged greater Helle Thorning-Schmidt, CEO Save regulation to prevent abuse of social networks through the Children International and former the dissemination of fake news.