Paper 14
“For a stronger and more autonomous geopolitical and economic Europe”
Springeurop, a private, non-partisan think tank founded in 2013, is convinced that in the current crisis context Europe cannot fulfil a credible geopolitical leadership role without having considerably strengthened its economy, particularly in the face of China and the USA.
Among the various priorities identified, we would highlight:
At the geopolitical level:
The need for the EU of 27 to have an enhanced cooperation procedure in areas of common interest, eventually even extended to the new European Political Community (EPC) bringing together 44 countries;
EU governing bodies and voting procedures that allow decisions to be taken more quickly, both internally and internationally.
At the economic level:
The need to strengthen industrial and innovation policy;
Mastering climate change and new energies.
Main existing weaknesses:
Although it remains the world's largest economic bloc (450 million consumers), the EU lacks a geopolitical and economic strategy and leadership vis-à-vis the USA and China;
Its institutional functioning is far too heavy and complex, with three institutions and administrations;
It is slow to put its strategy in place with adequate financing and regulatory tools in the sectors of the future such as infrastructure, defence, semiconductors, batteries, digital, the environment and new energies;
Its historical and fundamental values based on universality are under attack from within by a harmful communitarianism;
Its propensity to legislate urbi et orbi in a bureaucratic way prevents the development of economic liberalism and leads to deindustrialisation to the benefit of its competitors, above all American and Chinese;
Finally, planned ecology rests on ideological postulates that are often far removed from science, common sense and industrial realities.
Our recommendations:
1/ Simplify EU governance and decision-making:
The common foreign and security policy would be defined by the Council, but by qualified majority and with a right of proposal, scrutiny and veto for the Parliament;
It would be carried out by the President of the Commission, assisted by the High Representative, who would no longer have an autonomous role or function;
The President of the Council would still be appointed by the Council but would only have an internal function and no competence to represent the Union externally.
2/ Strengthen the role of the euro: The euro is an important lever for a strong currency and economy, implying a roadmap with deadlines:
EU Member States must impose greater discipline on countries with large budget deficits, often coupled with public debts that must quickly move towards acceptable European averages;
In addition, Monetary Union must be completed, which implies a solid governance structure including the implementation of an EU-led Banking Union. The aim is to establish a pan-European capital market while protecting citizens against excessive risk-taking;
Finally, it will be important to help those who have not yet adopted the euro to meet the accession criteria as soon as possible, in order to extend its influence and status with the other major geopolitical blocs.
3/ Rationalise European finances, aid and subsidies: The current excessive scattering under “NextGenerationEU”, “ERDF”, “REACT-EU”, “Horizon Europe”, “InvestEU”, the “EIB and other subsidies and loans” must be avoided.
4/ Create an Economic Strategy and Innovation Council: The President of the European Commission and the Commissioner for Industry should set up an Economic Strategy and Innovation Council, meeting twice a year with representatives of European employers, SMEs and trade unions, in order to draw up an economic recovery plan underpinned by KPIs. This plan will target innovative technologies and services such as infrastructure, defence and security, semiconductors, batteries, the environment and new energies. The “Global Gateway Board” should not be solely a geopolitical project but an economic one, given its sectoral priorities. It should be integrated, together with European employers, into a new Economic Strategy and Innovation Council in order to avoid any duplication.
5/ Target post-Erasmus youth entrepreneurship: Using currently unspent funds, the Commission could better support the European entrepreneurial spirit among young people after Erasmus.
www.springeurop.eu
January 2023
