FLASH
Shkruar nga Pamfleti
The way the commission and member states currently operate undermines the bloc's economic objectives!
After the European Parliament elections in June and with a new EU leadership under European Commission President Ursula von der Leyen now nominated, it is time to focus on developing a program of action, starting with the economy.
In the next five years, the EU must focus on improving its economic performance in order to maintain its social safety net and make the necessary investments in technology, climate, security and defence. It must also become a credible geopolitical actor. And this urgently requires the transition from annual growth of 1.7 percent to about 2.5 percent.
Half of this growth deficit is accounted for by demographics. An aging European population means that a functional migration policy is required, and in democratic societies that must be preceded by a serious public debate. Every EU member state is currently importing labor to address internal shortages. Even those governments that are most vocal in their opposition to mass immigration, such as Italy or Denmark, are doing so at the behest of many economic sectors that depend on imported labor. It is time that the contribution that migration makes to competitiveness is taken seriously as part of the single market.
The other half of the growth deficit can be attributed to fragmentation. Former Italian Prime Minister Enrico Letta's report on the future of the common market has clearly laid out the systemic costs to the European economy stemming from the fragmentation of energy, technology and capital markets. The need for greater integration is also the message of the new report on competition by the former president of the European Central Bank, Mario Draghi.
But there are two other dimensions of fragmentation that often go unnoticed. The first concerns policy making. Even in areas where the EU is integrated, policies are developed in silos.
The second aspect is organizational and has to do with the distribution of portfolios in the commission. The EU Treaty stipulates that the commission must consist of members representing two-thirds of the EU countries. In 2013, however, member states decided that there should be one representative for each country to ensure equal representation. A college of 27 commissioners has led to an inflation of portfolios and a proliferation of legislative initiatives. No doubt many of them are necessary, but they are produced haphazardly, generating an increasing burden on businesses.
Take the EU Green Deal. Sectoral and product legislation produced by different commission departments with separate but often overlapping certification procedures, approval processes and data entry systems are simply too costly and difficult to implement. The Wise Men's Group report on the future of the European customs union that I chaired for Paolo Gentiloni, the Commissioner for the Economy, contained ample evidence of this.
Or take Europe's Global Gateway - Europe's version of China's Belt and Road Initiative. This is designed to channel EU investment around the world and support the economic transformation of its partners. It also aims to deepen markets for EU companies and ensure access to raw materials. It's a smart mechanism, but it lacks financial depth and will offer less if not combined with trade and standards. A package of market access, combined finance from the EU budget but also from the European Investment Bank, and common standards would give the EU international economic power and help build sustainability.
The good news is that there is a solution to all this, although much will depend on how Von der Leyen assembles the College of Commissioners. During her first term, she led the way by appointing executive vice presidents who would help build greater integration across policy areas. Results have been mixed, but it now has the opportunity to double down given its focus on improving European competitiveness.
It could also make more use of the commission's secretary-general to create greater coherence within the country, empowering this person to push the commission's various departments.
Finally, the senior representative Kaja Kallas, in the capacity of vice president, will have to raise the game of the commission also in the external dimension of EU policies. The bloc cannot afford another fiasco like the deforestation legislation passed last year that has created a backlash around the developing world and put its international green partnership at risk.
With the announcement of her team, von der Leyen can set the tone for the next five years and confirm that it will be about making Europe stronger economically./ Adapted "Pamphlet" from "Financial Times"
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