Since 1945, Europe has enjoyed peace and prosperity as never before. The central reason was the creation of Europe's internal market which has locked the economies of different member states together in a legal community that enjoys the free movement of people, capital, goods and services. But if national financial armouries are deployed to boost national industries, with exclusive regard to narrow national economic interests, then the rules of fair competition and the internal market they support will be undermined.
The unfolding financial crisis has convincingly demonstrated the strengths of Europe's second big project, the creation of a common currency. Without it, some members of the Eurozone might have found themselves in far greater difficulty. However, the euro project is revealed as incomplete; it has a central bank but it does not have a central treasury and the supervision of the banking system is left to national authorities. A lack of solidarity inside the Eurozone, or even with new members of Europe's unified market could become a hazard for the Eurozone.
The third project under pressure is the consolidation of the EU's historic enlargement to the East. The economic vitality of the new member states has benefited the whole Union in recent years. But now the protectionist statements of some EU leaders, and the unwillingness of some member states to offer financial assistance to Europe's most vulnerable economies, has led some to talk about some old member states wanting to "undo the enlargement". A new tide of populism and nationalism threatens to undermine the EU's core principles of solidarity, tolerance and commitment to open society.
As we look forward to the G20 summit on 2 April, Europe is in a critical position. Its member states are too integrated to be able to develop purely national responses, but too divided to decide on a common way forward.
It is vital for Europe's leaders to show the vision and leadership to develop a co-ordinated position. It is a time for creative institutional responses at a European level on regulation, on the EU budget, and to encourage temporary and targeted stimuli, for example through a 'Green new Deal'. Leaders should also consider setting up EU Commission-led task-forces to secure and strengthen the single market. They should consider creative ways of underpinning the euro such as Euro-bonds or an EU version of the IMF. Western European leaders must go out of their way to show solidarity with their Eastern counter-parts - including special measures for those struggling to join the Eurozone - rather than the "each for himself" attitude they currently convey. And all well-off countries should explore ways to assist the less developed world against a financial calamity that is not of their own making. We endorse the idea of the IMF issuing Special Drawing Rights (SDRs) with the rich countries lending their allocations to the poorer ones.
The G20 is widely seen as a harbinger of the new global political order. European leaders must show that Europe can contribute in a meaningful way to solving new international problems, rather than parading their internal divisions to the rest of the world. The EU began its life as an economic project designed to achieve political goals. But, as the economic crisis continues, only bold political action at a European level will save the European economy and the European project as a whole.
Asger Aamund
Martti Ahtisaari
Giuliano Amato
Jan Krzysztof Bielecki
Svetoslav Bojilov
Emma Bonino
Ian Buruma
Manuel Castells
Charles Clarke
Massimo D'Alema
Marta Dassu
Etienne Davignon
Jean-Luc Dehaene
Pavol Demeš
Tibor Dessewffy
Andrew Duff
Sarmite Elerte
Uffe Ellemann-Jensen
Timothy Garton Ash
Teresa Patricio Gouveia
Heather Grabbe
Pierre Hassner
Diego Hidalgo
Michiel Van Hulten
Jaakko Iloniemi
Wolfgang Ischinger
Mary Kaldor
Olli Kivinen
Gerald Knaus
Mark Leonard
Juan Fernando López Aguilar
Nickolay Mladenov
Andrzej Olechowski
Mabel van Oranje
Leoluca Orlando
Cem Özdemir
Ana Palacio
Chris Patten
Diana Pinto
Andrew Puddephatt
George Robertson
Albert Rohan
Dariusz Rosati
Adam D. Rotfeld
Daniel Sachs
Pierre Schori
Giuseppe Scognamiglio
Narcís Serra
Aleksander Smolar
George Soros
Erkki Tuomioja
Antonio Vitorino
Stephen Wall
Andre Wilkens
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1 Comments
The EU set out as an economic project. Often criticised for this purely economic agenda, the EU brought about political integration on a globally unprecendented scale. Many pitfalls have yet to be overcome - that is true - but the four freedoms, the Euro, and EU enlargement have benefited every single European citizen.
It is about time that European heads of state start communicating success stories.
In a year of many anniversaries and European elections, it is about time that our political representatives display their determination to continue on the path of peace and prosperity we citzens support.
Thank you for a letter I fully support!
Maximilian Rech