APRIL 2019 ISSUE 24 CHALLENGE EUROPE Yes, we should! EU priorities for 2019-2024 Dimitar Bechev Srdjan Majstorović Larissa Brunner Julia Okatz Paul Butcher George Pagoulatos Christian Calliess Gunter Pauli Poul Skytte Christoffersen Marta Pilati Marie De Somer Martin Porter Claire Dhéret Janez Potočnik Andrew Duff Julian Rappold Janis A. Emmanouilidis Jamie Shea Giovanni Grevi Corina Stratulat Annika Hedberg Evangelia (Lilian) Tsourdi Stefan Heumann Herman Van Rompuy Paul Ivan Fabian Zuleeg Marko Kmezić YES Lab EDITING Rebecca Castermans GRAPHIC DESIGN Mariusz Dabek mgraphicdesign.eu PHOTOGRAPHY AFP Forum Cover photo: Alexandros Michailidis / Shutterstock.com LEGAL DEPOSIT ISSN-1783-2462 This publication is available free of charge on www.epc.eu The support the European Policy Centre receives for its ongoing operations, or specifically for its publications, does not constitute an endorsement of their contents, which reflect the views of the authors only. Supporters and partners cannot be held responsible for any use that may be made of the information contained therein. CHALLENGE EUROPE Yes, we should! EU priorities for 2019-2024 Dimitar Bechev Srdjan Majstorović Larissa Brunner Julia Okatz Paul Butcher George Pagoulatos Christian Calliess Gunter Pauli Poul Skytte Christoffersen Marta Pilati Marie De Somer Martin Porter Claire Dhéret Janez Potočnik Andrew Duff Julian Rappold Janis A. Emmanouilidis Jamie Shea Giovanni Grevi Corina Stratulat Annika Hedberg Evangelia (Lilian) Tsourdi Stefan Heumann Herman Van Rompuy Paul Ivan Fabian Zuleeg Marko Kmezić YES Lab EUROPEAN POLICY CENTRE TABLE OF CONTENTS About Challenge Europe 4 Foreword by Herman Van Rompuy 5 1. Yes, we should! Rebecca Castermans, Janis A. Emmanouilidis, Johannes Greubel, Giovanni Grevi and Corina Stratulat 9 WHAT TO DO PART I Sustainable prosperity 2. Deepening the EMU as a win-win: How to keep the reform debate alive George Pagoulatos 19 3. Prioritising circular economy to boost European competitiveness Janez Potočnik and Julia Okatz 27 4. Making climate neutrality the galvanising heart of a new economic agenda for Europe – Martin Porter 35 5. Framework for a new European economy – Gunter Pauli 43 6. Give EU citizens what they want: The case for Social Europe and fiscal justice – Claire Dhéret 49 PART II Values 7. Restoring credibility and trust by enforcing the rule of law Christian Calliess 59 8. Protecting democracy in the EU: Tackling the disinformation problem Stefan Heumann 67 PART III Migration and Schengen 9. Safeguarding Schengen: The next European leadership should return to fact-based policies – Marie De Somer 77 10. Solidarity in EU asylum policy: From an emergency-driven approach to the fair sharing of responsibility – Evangelia (Lilian) Tsourdi 85 PART IV Europe and the world 11. Rules first: The way forward for ‘shaping power’ Europe – Giovanni Grevi 93 12. European security and defence: A year of opportunity and risk – Jamie Shea 101 13. The European Union and the Balkans: In the same boat Corina Stratulat, Marko Kmezić and Srdjan Majstorović 107 14. EU and Eastern Europe: The case for continued engagement – Dimitar Bechev 115 2 CHALLENGE EUROPE – YES, WE SHOULD! EU PRIORITIES FOR 2019-2024 HOW TO DO IT PART V Institutions 15. The role of the (European) Council: Practical improvements in volatile times Poul Skytte Christoffersen 123 16. The European Commission: The need for a clearer set-up Paul Ivan and Fabian Zuleeg 131 PART VI Instruments 17. The EU budget – including the CAP – should be used to finance the Union’s priorities – Annika Hedberg 141 18. A nimble and responsive EU? Predicting unpredictability: A new approach to EU policymaking – Fabian Zuleeg and Marta Pilati 149 PART VII Differentiated integration 19. Handle with care: The potentials and limits of differentiated integration Julian Rappold 157 20. The never-ending Brexit? – Larissa Brunner and Fabian Zuleeg 167 PART VIII Future of Europe 21. The European Citizens’ Consultations: Will the member states make them count? – Corina Stratulat and Paul Butcher 177 22. The politics of ever closer Union – Andrew Duff 183 23. Re-unite EUrope: A shared Leitmotiv for the next EU leadership Janis A. Emmanouilidis 189 PART IX YES Lab 24. Our vision: Europe, a beacon of sustainability Younger European Strategy Lab (YES Lab) 201 EUROPEAN POLICY CENTRE 3 ABOUT CHALLENGE EUROPE The European Union (EU) is a great better equipped to respond to the underlying success story. For more than six decades, political, socio-economic, and cultural the European project has generated insecurities plaguing Europe, and later down unprecedented levels of freedom, peace, the line, to radically re-think the way we prosperity, openness, and stability across organise our societies. the continent. European integration has shown that we wield far greater influence Each of the 24 contributions in this if we cooperate economically and volume, authored by renowned experts politically. But at a time when working and practitioners in their respective together is increasingly necessary, trust in fields, presents a set of concrete the wisdom of cooperation is challenged. recommendations for the next EU leadership, both in terms of key priority There is nothing inevitable about the areas – sustainable prosperity, values, European project. Today, the hard-won migration and Schengen, and Europe’s achievements of European integration are place in the world – and on how the EU taken for granted or are openly questioned, can use the instruments it already has while the wider international conditions at its disposal to act in a more effective, that benefitted the Union’s development transparent, and decisive way. are fraying. Internal and external centrifugal forces are putting European The volume ends with a call for action integration under pressure. This is why from the younger generation. Looking the EU cannot afford to stall – muddling into the future, participants of the EPC’s through clearly entails the risk of losing Younger European Strategy Lab (YES Lab) relevance in the global context and in the contemplate what Europe should look like eyes of citizens. in 2057. This issue of Challenge Europe – the Challenge Europe is a multi-authored, 24th edition already – delivers an alternative periodical publication appearing at key to those who cynically claim that European moments and dealing with key issues in the cooperation no longer works and should be EU integration debate. The papers of this abandoned. It argues instead that integration volume were concluded in March 2019. can still work, and that it is still the best answer to the many problems we are now We would like to thank all the authors facing. We want to remind people of the value who contributed to this issue, and Mariusz of European cooperation and offer some Dabek, Myriane Bartholomé, and Maxime suggestions on how we can continue to shape Bineau, without whom this publication and improve the project now, so that we are would not have been possible. 4 CHALLENGE EUROPE – YES, WE SHOULD! EU PRIORITIES FOR 2019-2024 FOREWORD Herman Van Rompuy President Emeritus of the European Council, President of the European Policy Centre The European Union (EU) is not alone of chaos in the United Kingdom (UK) in its struggle to grapple with the major after the Brexit referendum have opened headaches of our times. The Western the eyes of many. It was not even that world as a whole is affected. Inside the necessary for young people: their eyes Union, the crises in and of its national were already open! societies and democracies have radiated to the EU level. Half of the member states But on the other hand, paradoxically, have minority governments. If they are citizens seem to insist more than some politically weak in their own countries, time ago on national or even regional how can the Union be strong? The EU is, solutions, because unfettered globalisation after all, also the sum of its member states. offers little protection against threats like deindustrialisation, financial speculation, I am not trying to make excuses for the illegal migration etc., prompting many Union. However, no good decision can people to fall back on themselves. be made based on a wrong reading of the current situation. After all, the EU In times of confusion, leadership is needed. institutions, with their new composition Striving for ‘more Europe’ is, therefore, a following the European elections in May matter of leadership, of political courage 2019, must work in a context that is – a scarce commodity in today’s world, politically and socio-economically difficult. unfortunately. But leaders have to keep in mind that societal support for the European There is a great paradox. On the one project is greater than assumed. hand, more than ever, many people are convinced that major problems such One must, of course, be realistic and take as climate change, unemployment, into account the general sense of malaise migration, economic automatisation and that is plaguing so many societies today, growth, terrorism, trade, military security, including European ones. This is not the and inequality require a European time for a major European offensive, a approach. Many of our fellow citizens ‘tectonic shift’, a qualitative integration instinctively know that being isolated in jump. Now is the time to re-energise the today’s world is close to being suicidal. European project and to avoid stagnation. This certainly applies to small countries The level of ambition must be chosen well. but also to those in the EU who still think High expectations can lead to equally great they are ‘big’. Never before have people disappointments. There has been enough so clearly recognised the usefulness of EU disillusionment since the poly-crises membership. Support for EU membership erupted in 2010. As is often the case, we has never been greater in 35 years, have to find the balance between ambition especially among youngsters. The years and realism. EUROPEAN POLICY CENTRE 5 The newly formed EU leadership (after May 2019) should be aware of the possibilities as well as the constraints they have to live with.