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Western EuropeApril 2 2006

Balance is the key to EU strength

As his country hosts the EU presidency, Austrian chancellor Wolfgang Schüssel says the European competitiveness agenda can be boosted.
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Robert Schuman, one of the founding fathers of the EU, said in his famous speech in 1950: “Europe will not be made all at once, or according to a single plan. It will be built through concrete achievements which first create a de facto solidarity.”

This combination of strategic vision with a pragmatic approach has proved a singular success. Today, one of the reasons why many of our citizens are critical of the EU is the perceived lack of such a clear distinction. The only way to counter the sceptics is through positive action. The Austrian EU presidency is therefore taking a pragmatic line, with one clear message: Europe must provide benefits and protection.

Promoting global competitiveness and thus growth, and thus jobs, is the most urgent task both nationally and at the EU level. The union’s March summit has been dedicated to these issues since we committed ourselves to the Lisbon Agenda. A major new impetus was provided last October at Hampton Court by the UK presidency, breaking with the traditional Council setting and focusing on high-priority questions. These include areas such as research and innovation, education and security of energy supply. The European Commission and the Austrian presidency followed up on these ideas before and during the European Council meeting on March 23 and 24.

The path to strength

Europe is not going to become stronger and more competitive through constant self-criticism and internal comparisons, but through concerted efforts aimed at a common goal. Only then will Europe’s internal market be able to hold its own against the US and Asia.

Programmes and words alone will not suffice to secure real progress. With labour market policy, education and research being essentially matters of national responsibility, the key to success lies in member states living up to their commitments. There is enormous untapped potential. To take one example: if national research spending was raised to just 3% of gross domestic product, it would mean extra investment of €100bn a year – a financial boost that could never be achieved through the EU budget alone. Another tangible move towards greater international competitiveness is the creation of a European Institute for Technology, which could become a centre of creativity for research and education.

Early this year, when Austria had just taken over at the helm of the EU, the gas dispute between Russia and Ukraine gave a vivid reminder of our dependency on energy supply. Europe has to develop a strategic response to the question of security of energy supply. It will do so, on the one hand by diversifying sources and suppliers and on the other by harnessing the potential for increased energy efficiency.

Europe stands for a specific social model, a ‘European way of life’, which involves an intelligent and sustainable balance between productivity and social security, combined with a responsible attitude to the environment. It is this model that makes Europe so attractive to people outside the EU. But this way of life cannot be taken for granted; to be preserved, it has to be developed and adapted to new challenges.

The magic word

Balance is the magic word: undoubtedly, the complete implementation of the four freedoms in the internal market would yield the highest macroeconomic gains. But just as certainly, the social and, consequently, the political cost would quickly negate those gains. The other extreme, a revival of national protectionism inside the EU, is not viable either. A balance has to be found between shareholder value and corporate responsibility, as well as between the strongest possible competition and sensible regulatory frameworks.

This year, Austria is remembering two great men: Wolfgang Amadeus Mozart and Sigmund Freud. Both men inspired millions and their works are still as influential as ever. To draw an analogy with European policy: the phase of analysis is largely over. Now it is time for European creativity to be translated into real works and for the orchestra of Europe to strike up a powerful symphony.

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Read more about:  Analysis & opinion , Western Europe , Austria