Many considered 2014 to have been an 'annus horribilis'. Domestically, the member states found themselves under pressure from growing populist movements, fuelled by the social discontent caused by the economic downturn. Externally, we have faced unprecedented crises in the European neighbourhood, which transformed our ring of friends in the east and south into a dangerous 'ring of fire'. The recent tragic events in Paris and Ukraine demonstrate that we cannot shield ourselves from the conflicts around us. However, every crisis also brings an opportunity for reinvigoration, and the current Latvian EU council presidency offers a chance to tackle some key issues facing Europe.
We must challenge the populists and improve the economy. The echoes of the financial crisis can still be felt, and Europe faces a period of stagnation. The labour markets continue to present poor prospects and living standards have declined. This has led to public anger and mounting support for populist and Eurosceptic groups on all sides of the political spectrum.
"Every crisis also brings an opportunity for reinvigoration, and the current Latvian EU council presidency offers a chance to tackle some key issues facing Europe"
Unless the situation improves considerably, such parties will remain a prominent part of the European political scene. We must stimulate smart growth, combining budgetary responsibility with policies that promote economic activity. The EU council presidency and parliament must urge member states to stay committed to the path of reforms, including a deepening of the internal market, the adoption of a digital agenda and the launch of commission president Jean-Claude Juncker's investment plan. We must also maintain a long-term perspective and wrap up the transatlantic trade and investment partnership (TTIP) negotiations. These could be speeded up by the recent change, which moved talks about investor-state dispute settlement onto the last item of the agenda for negotiation. Concluding TTIP would not only bring the US and EU closer politically, but also contribute to growth and secure Europe's place in the world economy.
Additionally, we must strive to maintain European unity on Ukraine. Destabilisation and war are now an everyday occurrence near Europe's borders. The annexation of Crimea, the war in eastern Ukraine and the de facto annexation of Donbas mark the symbolic end of the post-cold war era and have forced EU member states to take a hard look at their values, security policy, and relations with Russia. Moscow is unlikely to de-escalate the conflict and restore Ukraine's territorial sovereignty over the occupied territories of Crimea and Donbas in the near future. Russia will continue to put pressure on states such as Georgia and Moldova and back fringe political movements that chip away at Europe's unity. If we genuinely want to play a leading role in the emerging multipolar world order, we will have to strengthen the EU's geopolitical capabilities, particularly in its immediate neighbourhood. This must involve both an increasingly assertive stance towards Russia and greater support for Ukraine and its reforms.
We must also build a genuine energy union. The heavy drop in the price of oil – by more than 40 per cent – is great news for consumers and industries in Europe, but less so worldwide. Hydrocarbons are a significant bargaining chip in foreign policy and their price directly affects geopolitical stability in the Middle East as well as Russian assertiveness and aggression towards Europe. The EU has finally started to take action on energy security after ignoring the issue for many years, and the new commission lists the establishment of an energy union as a key priority. The budget for 2014-2020 allocates funds for the building of a cross-border energy infrastructure, the creation of a common energy market, and an agenda promoting the development of new technologies in the energy sector. The Latvian EU council presidency must endeavour to overcome the potential inertia of bureaucratic structures and the opposition of certain member states and international corporations, to strive towards the goal of a genuine energy union.
The EU is under strain – to pretend otherwise would be insincere. We may crumble under its weight, squandering half a century of common effort. But we may also learn from past mistakes and emerge wiser, stronger and more unified than ever.