E3G

Europe in the World: Summer Briefing

By Chris Littlecott

Europe’s Assets

Europe’s record of providing prosperity and stability, and its strong assets for delivering them into the future is a basis for confidence. The single market, although incomplete, is the world’s largest. EU regulations are setting the global standard. Europe’s growing network of major cities creates 70% of new jobs and wealth, and leads the world in global economic integration.

Above all, Europe leads all major economic powers in generating political support for investment in the public goods which underpin the economy: in healthcare; in pensions; in social security; in education; in tackling climate change and preventing poverty and instability outside the EU. Europe also outperforms other countries in ensuring that economic growth actually leads to increased well-being, equity and social mobility. In contrast, the USA and most emerging economies are struggling to generate the necessary investment in social security, healthcare, pensions, environmental protection and modern, efficient infrastructure.

But the process of European economic reform over recent years has failed to construct an offer to its citizens based on these European assets and values, and so lacks public support. The negative discourse of reform for the sake of ‘competitiveness’ fails to connect positively with citizens’ aspirations, fuelling instead the politics of anxiety.

Europe’s prosperity and security in an interdependent world depends on the prosperity and security of others. Restoring momentum to Europe requires a compelling vision of its role in the world. That vision must project Europe’s strengths outwards to make possible prosperity and security for all.

Economic interdependence means that the EU must help create the conditions for others to manage these common challenges. Cooperating with others to resolve fiscal imbalances in the USA, energy security threats in China and the impacts of climate instability globally are all necessary to underpin the economic growth needed to maintain the social contract in Europe. An outward looking Europe, using its assets to its advantage in this way, would be better placed to reconnect with its citizens and restore political momentum to the idea of Europe.