Schultz in Argentina: Latin America and Europe are stronger together
Ladies and gentlemen,
Dear students,
Thank you very much for the invitation to speak to you today. I feel honoured to be here at the prestigious University of Buenos Aires where numerous Argentinian Presidents and several Nobel laureates were educated. I always enjoy exchanging views with smart young people; not just because I like open debates, but also because you are the future. And even though we live in times of turmoil, I am convinced that this future - your future - is a bright one.
The key message that I want to deliver today is simple: Together we are stronger. Latin America is stronger if its nations cooperate. The European Union is stronger when its member countries collaborate. And both Latin America and Europe are stronger when they join forces.
Of course, this is more easily said than done, given the various problems that both of our regions are facing. However, my view - and my message to you today - is an optimistic one: We can overcome the present challenges through cooperation. But before telling you why I am optimistic about the future, let’s begin by looking at the challenges we confront today.
Ladies and gentlemen,
I must confess that 2015 and 2016 have been the most difficult years of my career as a European politician. The EU i has been moving from one emergency summit to another. A few years ago, the financial crisis strained our economies in unprecedented ways. While doing our homework and protecting the Eurozone i, we almost lost one of its valued members: Greece. And whereas we managed to avert the “Grexit”, the majority in another one of our member states has expressed its will to quit the Union. We are now faced with the task of negotiating the “Brexit i”.
Meanwhile, the refugee crisis is still unfolding. Fuelled by wars, destruction, and a lack of opportunities, countless individuals and families have decided to flee to our continent, hoping for a more peaceful and prosperous future. Some political parties and national governments argue that Europe is overwhelmed by the sheer mass of refugees and migrants. They have called for a reduction - or even an outright stop - on migration to the EU, even if in blatant violation of the fundamental right to asylum. And on top of all of this, we are faced with a new kind of terrorism on European soil by the so-called “Islamic State”.
In Latin America, your problems are different in nature, but no less challenging. The biggest country, Brazil, continues to be fighting a multiple crisis in the realms of politics, economics, and health. In Venezuela democracy, the rule of law, and human rights are at risk, as many people are struggling to obtain the most basic necessities. And meanwhile, your own country, Argentina, has embarked on an ambitious reform process that requires endurance and resilience.
The key question that both Latin America and Europe face is: What now? How can we solve these problems? In both regions we see populism on the rise - from left and right. In Europe, some people want stricter border controls, a revival of national currencies, or an end to the freedom of movement. Broadly speaking, these voices call for an expansion of national sovereignties - a return to what they view as the good old age of nation-states.
As you may have guessed, this is not my answer. Put simply, my answer is that we are stronger by acting together rather than being divided. We are stronger by engaging with each other, by cooperating with one another, and by continuing to integrate, where it makes sense. I would argue that if we do so - if we collaborate - we can shape globalization in our own way. If we fail to do so, however, we are exposed to the rules set by larger and ultimately more powerful actors at the international level. If Latin America and the European Union manage to cooperate, we are a strong voice in the world for viable and sustainable solutions to global issues such as the refugee crisis, climate change, financial market regulation, and the fight against unbearable levels of social inequality.
Ladies and gentlemen,
You may wonder what gives me hope that we will indeed manage to overcome the challenges we face.
We live in turbulent times; globalization is questioning proven concepts - from economics to security; indeed, the process of globalization is challenging the very concept of the nation-state itself. There are problems that simply cannot be tackled by any nation-state alone. That is why countries need to come together to solve such issues.
Maybe some of you are thinking: “Wait a minute! Argentina is a country of more than 40 million inhabitants. We are a proud and independent nation that can solve any problem by itself.” Similarly, in my home country, some people tell me: “Germany is a nation of more than 80 million and one of the biggest economies in the world. We can tackle any issue by ourselves!”
There is no doubt that Argentina and Germany are great nations - definitely in football! I visited the Boca Juniors’ stadium - La Bonbonera - yesterday. I was truly impressed, and Boca has won many more titles than my team has! Are there any Boca supporters here tonight? ... And are there any River Plate fans? ... And anyone else rooting for Cologne?
... I love football, too! However, the world is not a football pitch. Just compare Argentina’s 43 million inhabitants and Germany’s population of 81 million to China’s 1.4 billion and India’s 1.3 billion people! In 2050 it is predicted that Europeans will make up just about 5% of the world population.
In 2050 neither Germany nor any other EU member state might be a member of the G7 i anymore. The world economy will likely be dominated by the Big Three: China, the United States, and India, should the European project fall apart.
As anyone can see from these developments, the world is changing dramatically. Of course, we want to have a say in how the world will change. But we will only be taken seriously if we are large enough; and we are large enough as a whole only if we join forces.
With a GDP of around 15 trillion Euros, the EU is one of the three biggest single markets in the world right now; along with China and the United States. Despite the problems we have and the challenges we face, our members understand that they are better off inside the Union rather than outside of it. Around two-thirds of our international trade is conducted between the members of the EU. Being part of this large bloc makes us more resilient against external shocks and less vulnerable to the volatilities of global markets. However, the EU is not just advantageous economically, but also politically. Being part of this great Union is what allowed us to broker the Iran Nuclear Deal and negotiate the Paris Climate Agreement, for instance.
The European Union is not just a useful construct for the moment, though, but a project of generations. The EU was constructed by people who were outstanding visionaries and hard-nosed realists at the same time; individuals like Charles de Gaulle i and Konrad Adenauer; statesmen who wanted to avoid war and create prosperity for future generations by joining forces in an “ever closer union”. Over the past seven decades, we Europeans established institutions that have replaced the law of the jungle with the rule of law. And even though we have been challenged - over the past few years, more so than ever - the EU is not going away.
Indeed, I would rather argue that this persistence, which our Union has shown in recent times, is a testimony to its durability. This resilience is a clear sign that our European institutions have stood the test of time. We are aware that our Union is not a perfect one. We know that it needs to become more visible to the public and more responsive to the people. But we also know that it is only in the context of the EU that our voice carries enough weight to shape globalization and determine our common future.
In Europe it was the fear of another war, the hope for greater prosperity, and - last but not least - the history and values that we share, which brought us together. When I look at your region of the world, I see many of these elements in place as well: the shared history of pain and hope, the collective aspiration of current generations to create modern and prosperous countries, as well as the common values of human dignity and democracy. With your shared histories, languages, religions, and cultures, the nations of Latin America are uniquely placed for regional integration; maybe even more so than any other region in the world.
In some ways Latin America is certainly better placed for integration than Europe was at the time. To mention just one example: In the European Union we have 24 official languages; in Latin America you have two main languages - Spanish and Portuguese - and by speaking “Portuñol” you can even understand each other without much need for translation!
What I want to convey today is this: The future of Latin America is in your hands! Your generation can decide whether Latin America will unite further, where it makes sense, or whether you will pursue a more divided path. Some politicians prefer the latter, but we live in times of change: Peace is finally returning to Colombia. Cuba is opening up to the world again. I spoke to President Macri earlier today and I believe he understands that strengthening cooperation is the better way forward in this globalizing world.
Ladies and gentlemen,
Latin America and the European Union are natural allies. Our shared histories, languages, and cultures are an ideal foundation for a partnership based on mutual understanding and respect. We must collaborate in this changing world of the 21st century.
If we take our North American friends into the equation, just think about what such an Atlantic triangulation would mean! Together we make up more than half of the world’s GDP, more than 1.5 billion people, and about a third of the United Nations General Assembly. Together we would remain a true heavyweight in international politics; a voice that cannot be ignored; an alliance that could tackle the great challenges we face - from the fight against international drug trafficking to the reform of global governance institutions. All of this, dear students, is in your hands.
We have already taken steps in this direction. Four decades of exchange between the European Parliament and Latin American parliamentarians were institutionalized in the Euro-Latin American Parliamentary Assembly in 2006. Currently we are negotiating an Association Agreement between Mercosur and the European Union. Such an agreement would create a market of around 750 million people comprising a trade volume of approximately 130 billion US Dollars per year. President Macri has revived this negotiation process since his election and has been an outspoken supporter of concluding these negotiations sooner rather than later. I agree with him and I believe we’re on track.
Ladies and gentlemen,
I have argued today that we live in turbulent times. While the European Union seems to be in permanent emergency mode, Latin America appears stuck amidst economic and political crises. However, there are shimmers of hope. The EU continues to overcome all challenges.
Enlightened leaders in Latin America are pushing further toward regional integration. And finally, our two regions are moving closer toward a broader and deeper partnership. If Europe and Latin America collaborate, we can overcome the great challenges in the age of globalization based on common principles and shared interests.
Together we can muster the will to fight climate change and create an ecologically sustainable world economy.
Together we have the network to succeed in the struggle against international drug trafficking, thereby preventing - once and for all - the systematic violence and personal tragedies connected to narcotics.
Together we are capable of fighting international terrorism in all its forms, therefore eliminating one of the root causes of the global migration crisis by creating greater peace and security for people everywhere.
Together we have the expertise to restructure and regulate the global economy and the global financial industry; so that the rich don’t get richer while the poor get poorer; such that the market serves the people - and not vice versa.
Together we are strong enough to make sure that our shared principles of democracy, the rule of law, and human rights form the basis of globalization.
All of this is possible if we decide to work together. That is why I am convinced that our future - your future - is a bright one.
Thank you very much for your attention. I’m looking forward to your questions and our discussion.