The European Union is in need of a 'revived sense of urgency'

2014 was a challenging year, but EU policymakers must now seize 2015 as an opportunity to make a positive impact on citizens' lives, writes Martin Schulz.

By Martin Schulz

23 Jan 2015

The past 12 months were full of warnings for the EU. They came from different corners and in different shapes, but they all carried weight, truth and in a number of ways, encouragement. 2015 started on perhaps the worst possible note. The attacks in Paris were not a direct attempt against the EU, but they went against the very values that guide this union. They were another clear warning shot aimed at Europe’s core.

We must address these warnings with determination and consistency. However, at the same time, we must not fall into the trap of applying simplistic solutions which would fail to address the complexities at hand. Strengthening the EU's internal security will be top of the agenda for executives and legislatures alike, both at national and European level. Parliament stands ready to make its balanced contribution.

Last year, the most insightful analysis of the state of the union came when Pope Francis addressed MEPs and candidly pointed out the problems affecting the union - its inward looking approach, its hedonism and its fear of the future - and stressed the need to put society and human dignity back at the heart of our project. The organisation for economic cooperation and development (OECD) has heavily criticised the EU and its member states. A report published a few months ago details how widening inequality and a lack of action to correct this has reduced the potential for growth in the continent, putting an end - if this was not clear enough - to the idea of trickle-down economics and adding to the pressure to reform our agendas for the future.

"There is no denying that the EU can and must play a central role in reversing the worsening conditions we find ourselves in"

And possibly the single clearest wake-up call came last May when EU citizens went to the polls - many did not - to elect their representatives to the European parliament. Countless observers, especially in the run up to the vote, anticipated and considered the election results as the ultimate confirmation of the rise of Euroscepticism in Europe. Yet the reality is more complex. Although the Eurosceptic vote did increase somewhat, there was no tidal wave. Be that as it may, the elections must be considered as a last chance mandate for moderate European parties to achieve reforms. Abstentions and the anti-establishment vote were in most cases not an endorsement for a positive alternative agenda, but rather the reflection of a society whose cohesion is reaching its breaking point and of a tested middle class.

In recent years, fissures have been expanding rather than retreating. Our society has become more polarised on a number of fronts. People are losing trust in the capacity of politics and public institutions to act. They see the gap between rich and poor widening. On top of this, taxpayers see individuals and firms dodging taxes at their expense. They see corruption and organised crime gripping the soul of politics. Moreover, opposition is brewing between groups of law abiding citizens - between young and old, between those who have a safe job and those who live on short term contracts, and between migrants, nationals and long-term residents.

On a European scale, we have witnessed the opposition between austerity-minded and profligate-minded politicians, between north and south, core and periphery and small and big states. The soil for divergent forces in Europe is fertile everywhere. Eurosceptics, populists and extremists bank on a deteriorating scenario to reap electoral benefits. All that is needed for these forces to succeed is for moderate actors to ignore calls for urgent reform.

The EU does not have a magic wand that will allow it to solve all of its problems, reignite growth and bridge the economic and societal divisions that risk tearing it apart. However, a new sense of urgency is finally taking hold within the institutions and the member states. There is no denying that the EU can and must play a central role in reversing the worsening conditions we find ourselves in.

On the economic front, Europe must focus on completing the single market and making it fairer. In the eyes of firms and industries, the EU's attractiveness lies in its market of potentially more than 500 million consumers. It offers economies of scale, standards and legal certainties. The single market is the crown jewel of the EU's successes. We cannot take it for granted – we must perfect it. It must be a key component of any economic relaunch.

"It is our duty to be a responsible and constructive world actor, both towards our partners and for the prosperity and security of Europe's citizens"

Nevertheless, we can no longer tolerate companies reaping the benefits of the single market while simultaneously pitting member states against one another in an unhealthy game of tax competition. This leads to tax avoidance and it comes dangerously close to actively aiding and abetting tax fraud. For this reason, in order for the single market to succeed, the commission must strive to combat tax fraud, avoidance and evasion, as well as fight against tax havens. This must be a core priority for the year ahead. Juncker's team faces an uphill battle in an area that is jealously guarded by member states. However, there is now strong political momentum and it must spare no effort in forcing progress on this matter. Parliament will be there every step of the way.

Additionally, the EU needs to settle the ideological dispute between politicians who preach austerity and those who advocate reckless spending, by putting sound investment at the centre of its action. The investment plan recently put forth by the commission must be backed by other European institutions and private investors. It must also have the full support - including financially - of the member states. The commission's proposal to exclude contributions to the fund from the calculation of an eventual excessive deficit provides a very real way of encouraging the ownership of the fund by the member states.

On the international front, the EU must not shy away from the role it has to play in facing the pressing global challenges. It is our duty to be a responsible and constructive world actor, both towards our partners and for the prosperity and security of Europe's citizens. The EU must be in the driving seat to stabilise its neighbourhood – this is in the interests of both European citizens and the people of the affected countries.

Part of citizens' mistrust stems from the perception that they are subjects rather than actors of the political and commercial village that the world has become. The EU must prove them wrong, whether we look at the transatlantic trade negotiations, the situation in our southern and eastern neighbourhood, migration or events further abroad, the EU must show greater firmness, fairness and engagement.

2015 must be a year of renewed trust in the EU institutions. For this to happen, we must to act with a revived sense of urgency and priority. This will not be an easy year, but it must be defined by renewed hope towards the future.

 

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