The STATE of EUROPE a New Action Plan for Europe
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THE STATE OF EUROPE A new action plan for Europe Autumn 2014 With the support of Media partners Friends of Europe is a leading think-tank that aims to stimulate thinking on key global and European political challenges. We are a key player in 6 policy areas: Future Europe | Smarter Europe | Greener Europe Quality Europe | Global Europe | Security Europe THE STATE OF EuropE A new action plan for Europe Report of the eleventh annual high-level roundtable for Friends of Europe Trustees, top policymakers, business leaders, civil society representatives and opinion-formers organised by Friends of Europe Also with direct input from Europe's citizens through Debating Europe Autumn 2014 Egmont Palace, Brussels Some of the familiar faces and household names who have used Friends of Europe’s high-profile yet neutral platform to put across their ideas to decision makers and to public opinion For more information on Friends of Europe’s work and to download our publications, please visit www.friendsofeurope.org friendsofeurope friendsofeurope friendsofeurope.foe friendsofeurope This report reflects the conference rapporteur’s understanding of the views expressed by participants. Moreover, these views are not necessarily those Table of contents of the organisations that participants represent, nor of Friends of Europe, its FOREWORD 5 Board of Trustees, members or partners. EXECUTIVE SUMMARY 6 Reproduction in whole or in part is permitted, provided that full credit is Annual roundtable demands given to Friends of Europe and that any such reproduction, whether in action from new EU leaders 6 whole or in part, is not sold unless incorporated in other works. A NEW ACTIOPON PLAN FOR EUROPE 9 Looking for solutions 11 Time to get more competitive 17 Job creation 21 Have we forgotten the environment 18 Security under increased threat 31 The changing stance of the U.S. 40 Looking for solutions 11 state OF EUROPE VIEWPOINTS 46 Turning "incomplete Europe" into competitive Europe by Joaquín Almunia 47 Social Europe: Regain citizens's trust with bold new actions by Elisabeth Guigou 49 Why global Europe must change in an "anxious age " by Shada Islam 51 Europe is killing NATO by Julian Lindley-French 57 Rapporteur: Sebastian Moffett The right kind of (green) growth by Jürgen Trittin 59 Publisher: Geert Cami On Europe's retreating union: Diagnosis and Project Director: Nathalie Furrer a proposal by Yanis Varoufakis 61 Project Managers: Françoise Soudaz, Laetitia Garcia Moreno, Nigel Olisa Photographers: David Plas, Philippe Molitor ANNEX I - List of discussants 65 Design & Layout: Cristina Frauca ANNEX II - Programme 69 © Friends of Europe, November 2014 ANNEX III - List of observers 74 This report is printed on sustainably produced paper 4 Friends of Europe | Future of Europe The State of Europe: A new action plan for Europe | Autumn 2014 5 FOREWORD It’s been quite a year. Elections to the European Parliament in May highlighted growing public disaffection with the European Union; there was a surge in public support for populist parties across Europe; a bruising institutional squabble followed over the appointment of a new president of the European Commission; and the debate over growth vs austerity grew louder and more acrimonious. On the foreign policy front, meanwhile, the EU struggled to deal with an increasingly assertive Russia and the spread of Islamic extremists on its southern flanks. All these questions were top of the agenda of Friends of Europe’s annual “State of Europe” VIP roundtable, with some of the continent’s most influential policymakers, parliamentarians, business leaders and civil society representatives giving their views on Europe’s many challenges - and aspirations for the future. Organised at the start of Friends of Europe’s 15th anniversary year, with the support of the Italian government as holders of the EU presidency, participants hammered out a roadmap for the EU's new leaders, calling for more-assertive policies to ensure growth, fight stubbornly high unemployment, boost competition, make Europe greener and play a stronger role on the world stage. Discussions were animated – with many speakers voicing deep unease about the future direction of Europe and the complex and interconnected challenges facing the EU’s new leaders. In addition to the discussion among Roundtable participants, Debating Europe brought in questions posed by European citizens on all five of the sessions: Future Europe, Smarter Europe, Greener Europe, Better Europe and Global Europe. Once again, the Roundtable brought together high-level participants from across Europe. This summary of the debates illustrates that it is indeed time for a new action plan for Europe. The EU’s new leaders should take heed. Giles Merritt Geert Cami Secretary General Co-founder and Director Friends of Europe Friends of Europe Jean-Paul Kress Benedetto Della Vedova Lirim Muharemi President and Chief Under-Secretary of State President of LM & CO Executive Officer for Foreign Affairs, Kapital Invest and Sanofi Pasteur MSD Italy Chairman of Lightbringer Foundation 6 Friends of Europe | Future of Europe The State of Europe: A new action plan for Europe | Autumn 2014 7 High unemployment appears to be alienating young people, who are tired of EXECUTIVE summary unfulfilled promises and summits with no results, said Reiner Hoffmann, President of the German Confederation of Trade Unions. “This leads to young people who don’t Annual roundtable demands action from trust politicians and don't have trust in Europe,” he said. new EU leaders With so much focus on economic problems, some environmentalists worry that green policies are seen as a brake on growth. They point out that capital spent on Friends of Europe’s high-level annual roundtable hammered out a roadmap for large-scale energy efficiency measures would create jobs and reduce spending on the EU's new leaders, calling for more-assertive policies to fight stubbornly high imported energy. There is “a very deeply flawed assumption, that there is a trade-off unemployment, boost competition, make Europe greener and play a stronger role between the jobs and growth agenda and actually being sustainable,” said Sony on the world stage. Kapoor, Managing Director of Re-Define, a think tank. “I think that couldn't be State of Europe 2014 took place at a difficult and bruising period for the EU as it further from the truth. However, it’s a major challenge to persuade businesses and moves from crisis to crisis. Fears of a Eurozone collapse may have eased but State consumers of this.” of Europe participants noted that the economy is hardly growing - and could possibly “This is not something for the short term,” said outgoing Environment Commissioner be on the verge of another recession. Unemployment is high especially among Janez Potocnik. “What I am really worried about is that democracies today are not young people – who feel growing alienation and mistrust of their governments and rewarding people who are thinking long term.” of the EU. Russia’s invasion of the Crimea took most Europeans by surprise early in 2014, This, in turn, contributed to the strong results for anti-EU parties at the European and showed up vulnerabilities in the EU's security architecture. Though the EU Parliament elections in May 2014 – and may reduce the prospects for Europe-wide deploys tools such as diplomacy, trade and aid, it does not have the military force to solutions to economic problems. “I believe that for the next five years, we will have back these up. NATO is heavily dependent on U.S. leadership, a burden that some huge challenges,” said Mario Monti, former Italian Prime Minister and Friends of Americans are becoming weary of. Europe's Trustee. “That is good because we know that Europe only makes progress through challenges.” “If Crimea is not a wakeup call that defence spending is inadequate then they might have to wait till it's too late,” said James Rubin, Scholar in Residence at the One place to start could be greater public investment. As well as boosting short-term Rothermere American Institute, Oxford and former US Assistant Secretary of State. demand, this could create a basis for growth and thus benefit future generations. The next challenge from Russia could come in the Baltic states, he said. Because Current low interest rates in countries like Germany mean that the return from public these countries, unlike Ukraine, are members of both the European Union and investments should be greater than that from continuing to save money, Monti said. NATO, the West would be obliged to act. “We can no longer afford to act as if the future were not economically relevant,” he said. “That is the case in a system which does not recognise the particular role of However, Britain, France and Germany have their individual interests in Russia and investment, including of public investment.” President Vladimir Putin is trying to use these in order to divide the EU. “Europe is certainly still a financial and economic giant,” said former NATO Secretary General The incoming President of the European Commission, Jean-Claude Juncker, wants and Friends of Europe's Trustee Jaap de Hoop Scheffer. “It is a political adolescent to focus on a few key areas, such as energy and the digital economy, where markets and it is a military pygmy.” are still divided along national lines. Outgoing Competition Commissioner and Friends of Europe's Trustee Joaquin Almunia argued that a true European single Some Europeans think the time is to be bold. Sylvie Goulard, Member of the European market would allow many smaller European firms to expand across the EU's 28 Parliament Committee on Economic and Monetary Affairs and Friends of Europe's members and become more competitive globally. “We at the Commission are in Trustee, said Brussels should listen more to Eurosceptics and the anti- European favour of eliminating barriers,” he told the meeting.