Commissaris Danuta Hübner: " Zal de 21ste Eeuw Europees zijn? " (en)

Europa Forum Luzern

Luzern, 10 November 2008

Madam Minister, Ladies and Gentlemen,

Let me start my reflections on the future of the European Union by looking back at its origins. One factor which was decisive in its success was the willingness of the Member States to work together. Schuman and Monnet knew that Europe, devastated by the war, could rebuild its economy and regain influence in world politics only through common action. This conviction is reflected in the well known words of the preamble to the Rome Treaty: "determined to lay the foundations of an ever closer union among the peoples of Europe, resolved to ensure the economic and social progress of their countries by common action ".

Recent events remind us that this message is as valid today as it was 50 years ago. The global economy has faced into a serious downturn with negative impacts on our welfare. And the conflict between Russia and Georgia reminded us that the peace and security we enjoy is a fragile good and cannot to be taken for granted.

The lesson to be drawn from the past is that when, and only when, the EU is united, it has the tools to be a very effective player on the world stage. The way out of a prolonged period of economic stagnation in the Union in the 70s – following the energy crisis – was deepening of economic integration in the 80s, trade liberalisation and the creation of Single Market. The EU's joint action in response to the conflict between Georgia and Russia, I am convinced, has been decisive.

We need to show this unity of purpose more consistently, for instance with regard to the Lisbon Treaty. We need a new Treaty not only for the practical change it offers but also as a symbol, as a renewed expression of trust in each other, of our willingness to take on, together, responsibility for Europe's future. To use more poetic expression, Member States need to renew their vows to the European project.

Clearly, the Union will not cease to function without the new Treaty. However, our objective is not to simply make it function "somehow", but to make it function "well". We need the means to launch policies that will meet those challenges such as living up to environmental problems, helping us develop our relations with third countries, fight against poverty in the world, combating the threat of terrorism, and assuring energy supplies. We need an effective system of functioning for 27 Member States and almost 500 million citizens, suited to realities different from those faced 50 years ago by the six founding Member States.

We also need to show this unity of action when it comes to climate change. We all agree that this is a major challenge, not least due to its asymmetric impact on the territories throughout the world. Natural disasters will generate massive waves of migration. Some will be caused by sudden crisis; others will be the result of gradually deteriorating living conditions. The resulting social, ethnic and cultural conflicts will need new forms of government. Europe’s half century of integration and reconciliation may inspire some new approaches of dealing with these issues.

But climate change is also an opportunity for Europe’s businesses, which are at the forefront of clean technologies. Thus the climate package recently adopted by the European Commission is a unique chance to embark on a new path of growth, to benefit from a dividend similar to the one enjoyed by the countries which pioneered the industrial revolution in the 18th and 19th century: A chance for Europe to lead the revolution, after which competitiveness will be measured by the level of energy consumption and by innovative environmental technologies.

The other lesson we can draw from the past is that strong Europe means an open Europe in interdependent world. It is only in this scenario, that Europe has the potential to continue to play an important role – even if less so in terms of population or GDP weight – as an attractive model of development. Today high rates of economic growth are enjoyed by those who quickly react to new opportunities opening up in the global economy, who invest in human capital, in innovation, research and development. In brief, those who are able to change at the pace matching the changes in the world around them.

Europe cannot shut its door to globalisation. Take for example the recent failure in the Doha negotiations – which seems to make happy those who believe that we can continue to protect our farmers from external competition. They forget, however, that without access to the markets of countries such as Brazil, India and China our economies will have no chance to grow. Economic internationalism and trade liberalisation is in the interest of Europe, the greatest exporter in the world, and in the interest of Switzerland – the second commercial partner of the Union.

Let me welcome on this occasion the recent launch of negotiations on trade liberalisation in agricultural products between the Union and Switzerland. I guess that this message should resound particularly well in Luzern. Wasn't it the opening of the Gotthard pass which created a new impetus for growth in Luzern, with merchants setting out on the long trans-Alpine journey?

Globalisation – including the current crisis - means also new opportunities for co-operation. Take the experience of monetary integration in Europe. We all know that the geostrategic power centre is shifting towards the east. The emergence of China and India as economic growth poles will sooner or later translate into political power. For us in Europe this is an opportunity, not a threat. Already today, China imports much more from the European Union than from the United States.

We must develop economic cooperation between our two continents. The present financial turmoil is also an opportunity to coordinate policies more closely with our Asian partners. Exchange rate stability is as important for Asia - and for ASEAN in particular - as it was for the European Community in the past. Of course we are far from an Asian monetary system, but regional financial integration in Asia has progressed significantly since the financial crisis ten years ago. Europe’s experience may be useful for others, and in fact they are looking in our direction in search of inspiration.

Clearly, globalisation is also giving rise to fears among our citizens. I can understand that – it is not easy to accept the necessity to change a job or move into new business only because somewhere far away somebody is doing the same thing but at a lower cost. And, in the minds of Mr Smith or Herr Meier this is not offset by the fact that many more can today afford buying a GSM made in China.

Yet, we managed to get the support of our citizens on our approach to the climate change although it also means an enormous challenge to the competitiveness of European industry. Why it was possible? Because the European decision to lead the way in combating climate change was preceded by mass citizen movement which demonstrated a profound shift in values among an aware and engaged citizenry. In other words, people supported policy makers because they had the feeling of being informed and being involved.

This democracy medicine which seems to work against globalisation fears takes me to the area for which I am responsible in the European Commission – regional policy. This is perhaps the best example of a European policy which involves people, where decisions are taken close to the citizens and where they can participate in the policy design and management. Indeed, this is also the case for your new regional policy, which is implemented primarily by the cantons.

I think that there are three reasons which - against the backdrop of globalisation - make this policy so attractive today, not only for Switzerland and European Union but also for countries such as China, Russia and Brazil which want to follow on our approach.

Firstly, one of the paradoxes of our world is the increasing importance of what is happening in our vicinity. In the global reality, people confronted with new information, advancing technologies, competition coming from remote countries they cannot even locate on the map, rediscover the local community, their region or canton where they live and work. Regional policy, by involving local and regional levels in the policy design and delivery, matches these expectations.

Secondly, being competitive today means being innovative. And innovation can be best fostered within local and regional economies, through co-operation between local public and private actors and across sectoral and administrative divisions, including national borders. Switzerland which is at the heart of Europe is a key partner for such a co-operation: 18 Swiss cantons, representing 80% of its territory, participate in projects with border regions of the European Union.

The ultimate lesson is that countries can unlock their full growth potential only if they manage to exploit growth opportunities in all regions, both developed and developing. Faced with globalisation, people need to believe that they "will never walk alone", as the famous song of Liverpool soccer fans goes.

Perhaps I shall add here one more consideration, which has been made relevant by the recent financial crisis and the uncertainties our citizens face in the immediate future. In the midst of this turmoil, regional policy stands out as offering stable support to the real economy, continuing to invest in SMEs and creating new jobs in every region. This is also a reminder that the real economy is primarily anchored in regional knowledge hotspots which are essential in guaranteeing future wealth.

Ladies and gentlemen,

Today, more than ever, we should be "conscious that all peoples are united by common bonds, their cultures pieced together in a shared heritage, and concerned that this delicate mosaic may be shattered at any time" (as stated in the preamble to the Rome Statute).

That is why the primary task and responsibility for European politicians – instead of playing on existing fears - is to convince our citizens that isolation is not a solution and that faced with challenges we have to be united. That is why we all should still feel bound by the words written by Europe's founding fathers, by the conviction that our values, our cultures and interests are so closely intertwined that we have to look together into the future.

Thank you for your attention,