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“Third way”: EU tries to avoid a hard choice between US and China

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According to Euronews, the EU-China online summit of June 22 “was held in a tense atmosphere.” The EU has toughened its position on trade negotiations with Beijing, but observers note that Brussels continues to stay clear of the ongoing trade war between the US and the People’s Republic. Meanwhile, just as President Trump talks about “breaking ties” with the Celestial Empire, the United States is pulling out of OECD-organized negotiations over an international tax on digital companies above a certain revenue threshold. US Trade Representative Robert Lighthizer is looking for legal grounds for imposing unilateral duties on the European countries willing to jack up taxes on US IT companies. The situation may well lead to a new trade war.

By the turn of this year, Europe had still been desperately trying to walk the fine line between Washington and Beijing and implement its own version of the game in a world where parties can always agree or nix almost any bilateral deal. When in Washington, the European Commission backed the US side in the conflict with China, while during a visit to Beijing its delegation showed “understanding” of China’s position in trade disputes with America. However, even then, the Old World’s stand on the intensifying tug-of-war for dominance between the world’s two leading powers looked both ambiguous and “dangerous.”

The US wants the Europeans to clearly and unambiguously honor their political and even legal obligations, threatening otherwise to completely dismantle the entire system of relations, which has for decades relieved Europeans of the need to make independent, albeit difficult and costly decisions. Trump’s unilateralism has exacerbated the crisis in transatlantic relations to a degree that the concept of “Westlessness” took center stage at this year’s security conference in Munich. It was about the erosion of Western power to an extent that “the very concept of” the West “is now devoid of any strategic content.”

Meanwhile, China’s rapid economic, technological and political growth is forcing Europeans to decide whether they want to trade and exchange technologies with a possible future leader in many important areas of scientific and technological progress. And, ultimately, if the Old World is able to maintain its status of one of the most advanced socio-economic regions of the world.

Finally, while over the past few years the United States has become increasingly self-absorbed, Europe and China have been aligning their positions on global trade, including their rejection of Washington’s growing protectionism, and on climate change. Beijing has made it clear that in the event of a weakening of transatlantic ties, it is ready to immediately move in and fill the gap.

It is against this backcloth that towards the close of last year the number of European politicians holding out for Europe’s greater strategic autonomy from the United States reached a historic maximum. Optimists see the future of the European Union as a “counterweight” to the United States, should the latter “cross the line.” The new leadership of the European Commission has proposed the creation of a full-fledged European “center of power” to interact with the rest of the world, the US included, but with an emphasis on rational political interests.

At the same time, the Europeans are wary of the increasing centralization of political power in China under Xi Jinping, the state’s growing role in the economy and Beijing’s increasingly “assertive” foreign policy. By the end of 2019, the EU had gradually tightened control over Chinese investments, especially in the high-tech sector and infrastructure, but described all this as “regrettable but necessary measures” designed to create a new political platform for the development of closer ties.

However, in a matter of just a few weeks the coronacrisis forced the EU to start reconsidering its strategic worldview. First, the pandemic called into question the efficiency of supranational institutions as such – both in terms of legitimacy and the resources they are able to use to combat the challenge of catastrophic proportions. Amid the ongoing COVID-19 crisis, the “failure of the US global hegemony” has become “painfully obvious.” Finally, even before the pandemic struck, Britain’s withdrawal had deprived the EU of much of its “strategic weight.”

As for relations with China, Mark Leonard, Director of the European Council on Foreign Relations, said that the EU now sees Beijing’s strong desire to use its position as a leading producer of medicines and medical equipment as a means of increasing its political leverage. “The COVID-19 crisis has triggered a new debate within Europe about the need for greater supply-chain ‘diversification,’ and thus for a managed disengagement from China.”

That being said, right now the EU’s dependence on China “in strategically important areas” has actually increased. Diversifying sources of supply will not be easy. Experts argue that it would be crazy for a business to leave China, especially when it produces goods that are extremely important for the Europeans, such as pharmaceuticals and medical equipment. They also warn that producing all this in Europe and procuring in other countries, would cost more.

On the other hand, the outbreak of the epidemic has created preconditions for a new rapprochement between the United States and Europe. Still, the outbreak of the coronavirus infection on both sides of the Atlantic has been strong enough to force nominal allies to fight each other for resources. It is “every man for himself” now. The situation with the pandemic and its socio-economic impact on the United States is so bad that it is now undermining Donald Trump’s chances for reelection in November, forcing him to look for ever new ways to appease and rally his voters, even at the cost of slapping new tariffs on America’s closest allies. Bloomberg reports that in response, “Germany is preparing to strike back against the US if President Donald Trump follows through on his threat to kill off the Nord Stream 2 gas pipeline with additional sanctions.”

Strategically speaking, however, the EU and the US continue to have shared concerns in their confrontation with Beijing, including alleged theft of intellectual property, “forcing” private Western companies to transfer technology, industrial subsidies and violations of market rules by China’s state-owned firms. Speaking at a June 25 online conference, organized by the German Marshall Fund, US Secretary of State Mike Pompeo said that Washington had accepted a proposal by European Union foreign policy chief Josep Borrell to create a US-EU dialogue on China to discuss “the concerns we have about the threat China poses to the West and our shared democratic ideals.”

In a recent interview with Euronews, NATO Secretary General Jens Stoltenberg said that “… China is coming closer to us with weapons systems … the rise of China makes it even more important to maintain the bond between North America and Europe, the transatlantic bond.”

The EU remains formally committed to developing a “strategically- oriented foreign policy” that would give it “a sense of initiative and action.”

 “We grew up in the certain knowledge that the United States wanted to be a world power,” German chancellor Angela Merkel told parliament in June. “Should the US now wish to withdraw from that role of its own free will, we would have to reflect on that very deeply,” she added. French President Emmanuel Macron urges Europe to act more independently in world affairs in order to completely get rid of the need to choose between America and China. This is exactly what the EU’s top diplomat Borrell has in mind when he speaks about a “third way.”

Still, what has been discussed so far is at best preparation of documents to serve as a “strategic compass” for coordinating government measures.

Systematic inability to reach political and procedural consensus on many pressing international issues is the Achilles heel of EU foreign policy. The past few years have seen a rapid decline in the overall level of public confidence in traditional European elites, which has inevitably weakened the potential of political leadership across the EU. Besides, the growing sense of uncertainty among the leaders of individual EU countries is by no means adding to the unity of the 27-member bloc either.

On the one hand, the pandemic has “allowed Europeans to become less naive and more united in the face of Beijing, which supposedly tries to set them apart.” On the other hand, in its relations with the United States, Europe has found itself in a situation where it will have to try hard to make sure that America does not lose interest in continuing any “special” relations with Europe. Overall, the EU’s internal weakness and fragmentation, exacerbated by the current coronavirus pandemic, threatens to push the “united Europe” to the periphery of world politics.

According to most forecasts, tensions between the US and China are set to grow. Moreover, the old bloc system is actually a thing of the past now. The EU’s position will be determined by the severity of the humanitarian, financial and economic impact of the epidemic. It will also depend on whether the “soft power” of Europe is not accompanied by a “hard” one. The EU’s foreign policy has to maneuver between a mix of unenviable geopolitical roles of serving as a “buffer zone” in the new Cold War between China and the US, and of someone who has “dropped out of history” due to the loss of “identity and philosophy.” Europe will not be able to return to the “table of the great powers” unless it finds answers to these questions and avoids ending up their prey.

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The spirit of “Greater Albania” acquires Brussels substance

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image source: interaffairs.ru

A meeting of Serbian and Kosovo leaders which is scheduled to take place in Brussels in September may result in the signing of an agreement on the normalization of relations. According to reports, the EU leaders, who act as mediators in the Belgrade – Pristina dialogue, have prepared a draft agreement. Serbian and Brussels sources say the draft provides for recognition of the self-proclaimed independence of Kosovo by Belgrade in exchange for Serbia’s membership in the EU.

However, even if Belgrade chooses to sign the above-mentioned agreement, – such a step will do nothing to secure normalization in the Balkans. On the contrary, it could open a new chapter in the political and administrative “reformating” of the region. What comes as a key factor here is activization on the part of Albania, which is using the Belgrade-Pristina deal for its own purposes, and these purposes are infinitely far from what the leading European capitals count on. It would hardly be an exaggeration to say that a full-blown international and legal recognition of Kosovo’s independence (which is supposed to result from the agreement prepared in Brussels on the normalization of bilateral relations between Belgrade and Pristina) will become a prologue to more active efforts on the part of Albanian radicals to establish “Greater Albania”, which would incorporate Albania proper, most of Kosovo, Presevo Valley, parts of Macedonia, Montenegro, and, possibly, Greece, with a total population of up to 10 million.

Statements in support of creating such a state have come recently from many high-profile political and public figures in Kosovo, who maintain close ties with the Albanian community abroad and with influential American and European politicians.  One of them is Azem Vlasi, who headed the regional branch of the Union of Communists of Kosovo and was a member of the Central Committee of the Union of Communists of Yugoslavia in the 1980s. He doubts that the recent talks in Brussels on the division of Kosovo will produce an agreement.  In his opinion, the authorities in Pristina are not prepared to give up control of the entire territory of the region. Besides, it’s Kosovo that could become a center of the “collection” of Albanian lands in the Balkans.

The main guidelines to methodologically justify the program of creating “Greater Albania” were presented in the 1990s, by one of the most outstanding of Albanian intellectuals, Recep Chosja, who pointed out that «Albania has never accepted its present borders, always trying to remind international circles that its present borders are unfair, as they divide Albanian territory into two parts. These borders run across the very heart of Albanian people».

The official position of neighboring Albania, which is same nationality with Kosovo, is the acknowledgment of inviolability of the existing borders. In 1992 the head of government from the Democratic Party of Albania Sali Berisha said in an interview that «the idea of creating “Greater Albania” is alien to Albanian ruling circles and political forces».

Nevertheless, in May 2011, member of the Presidium of the Democratic Party of Albania, Azgan Khaklai, openly demanded that all Albanian territories should be united to form one state, while the incumbent head of government Edi Rama has been indicating that unification of Albania and Kosovo is Tirana’s Plan A and should be regarded as such in connection with the agreement between Pristina and Belgrade.

Public opinion polls conducted among the Albanian population of the Balkan countries suggest that the program of creating “Greater Albania” has been acquiring ever more popularity among the Albanian population of the Balkan countries. The idea of making Albania’s borders “ethnic” has already won the support of more than 80% of the population of Kosovo, over 70% of residents of Albania, and of more than a half of Macedonian Albanians. About one half of respondents in Kosovo and 40% in Albania believe that Greater Albania with its widest ethnically conditioned borders will come into being in the near future.

Meanwhile, at the end of 2006 a similar study conducted by experts of the UN Development Program found that only 2,5% of Kosovo Albanians considered unification with Albania the best solution, whereas 96% wanted Kosovo to become independent within the existing borders.

Such a situation may force leading world powers and international institutes to reconsider their recent policies, which focused on a state rather than on a territory and which envisaged that each Balkan country should search for a solution of its problems by itself. «A territory-focused policy regards the Balkan region not as a community of established countries, but as a system of territories that stay in dynamic balance and are thus capable of reformatting. «A carve-up of regional borders on the ethno-linguistic and religious principles may acquire fresh impetus in the course of current talks between Belgrade and Pristina. Serbia’s President Aleksandar Vucic has expressed readiness to recognize Kosovo in exchange for territorial concessions, while his counterpart Hashim Thaci hopes to invite to his country Serbian Albanians», – points out Le Monde diplomatique, emphasizing the situation in Presevo Valley, which borders on Kosovo.

Another potentially explosive “hot spot” covers three South Serbian communities (Bujanovac, Medveja and Presevo). According to the last census conducted in  Serbia, about 90, 000 people live on the territories of these three communities. The ratio of Serbs and Albanians is as follows: in Presevo  – 89% Albanians and 9% Serbs, in Bujanovac – 55% Albanians and 34% Serbs, in Medveja – 26% Albanians and 67% Serbs.

Chairman of Presevo community and leader of the Democratic Party of Albanians in Serbia Ragmi Mustafa has spoken in  favor of “exchange of territories” between Belgrade and Pristina, underscoring that all three communities “should join Kosovo” while “northern Kosovo should join Serbia”. In his words, the relevant proposal should be presented at the Brussels talks: «I think that this is the future of our region».

According to leaders of Presevo Albanians, the international community should make the Serbian government “refrain from impeding the expression of the freewill on the part of the population of the Presevo Valley».

Such a position echoes the program of the radical Kosovo movement “Self-Determination”, headed by former Prime Minister Albin Kurti. Kurti believes that Kosovo and Albania “should coordinate their actions and simultaneously streamline their legislation with a view to prepare for two referendums, in Albania and Kosovo,  on the outcome of which Kosovo will unite with Albania”. “I think that  this meets the interests of our people in the economic sphere and in the sphere of security”, – Albin Kurti points out, saying that after the  referendum the time will come to “solve pan-Albanian issues, in the first place, in Macedonia, Eastern Kosovo [Presevo Valley], Montenegro and Greece”. In the opinion of the “Self-Determination” leader, Kosovo authorities ought to hold talks not with Belgrade, about the  division, but with Tirana, about the unification.

Given the situation, there are grounds to expect activization of efforts on the part of both Kosovo authorities and Albanian  leaders in other Balkan countries and territories with a view to build up their military and political might. In fact, this process is already taking place. Deputy Director of the Information and Press Department of the Russian Foreign Ministry Aleksei Zaitsev has made a statement to this effect drawing public attention to the fact that the United States has begun to supply Pristina with military hardware. According to the diplomat, the US is thus openly undermining international efforts oriented at ensuring peace and stability in the Balkans.

Pristina has also stepped up efforts to establish military cooperation with Germany. All this testifies to the escalation of conflict in the Balkan Region amid the ongoing activization of the “Albanian factor”.  

From our partner International Affairs

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Legacy of antifascism for the common pan-European future

Manfred Nowak

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The post WWII architecture is a strong and decisive reaction to the Great Depression, the rise of fascism, the horrors of WWII and the Holocaust. The United Nations, created in San Francisco on 26 June 1945, are built on three main pillars: Freedom from fear and violence, freedom from want and poverty, human rights and respect for human dignity. For the first time in human history, war has been prohibited in international law with only minor exceptions, namely the right of States to self-defence and the collective security system under the guidance of the UN Security Council. For the first time in human history, the promotion and protection of human rights were acknowledged as a legitimate goal of the international community and international law. For the first time in human history, the main perpetrators of war crimes and crimes against humanity had been brought to justice before international military tribunals in Nuremberg and Tokyo. And for the first time in human history, economic and social development, prosperity and the eradication of poverty have been defined as goals of a new world order. These ambitious aims and objectives were only possible thanks to the antifascist consensus among the allies, which at that time seemed to be even stronger than the differences between capitalism and communism. When the UN Human Rights Commission, the predecessor of the current Human Rights Council, drafted the Universal Declaration of Human Rights between 1946 and 1948, this antifascist consensus was still strong enough to achieve a synthesis between the Western and the Socialist concepts of human rights. The Universal Declaration, solemnly adopted in Paris on 10 December 1948, contains civil and political rights together with economic, social and cultural rights and with the vision of a new “social and international order in which the rights and freedoms set forth in this Declaration can be fully realized” (Article 28).

As soon as the Human Rights Commission started to transfer this historic compromise between liberal freedoms and social security into a legally binding universal convention on human rights, the United States and its allies in 1951 forced a decision in the UN General Assembly to split human rights again into two categories, which dominated the ideological debates during the time of the Cold War. The International Bill of Rights, which was finally adopted after long negotiations in 1966, was divided into the International Covenant on Civil and Political Rights, favoured by the West, and the International Covenant on Economic, Social and Cultural Rights, favoured by the Soviet Union and its allies. Civil and political rights and freedoms were conceived as immediately binding State obligations to respect and ensure the rights to life, personal liberty, privacy, security and integrity, freedom of expression, religion, assembly and association and the right to participate in democratic decision making processes. Economic, social and cultural rights to work, fair, equal and healthy working conditions, social security, the rights to food, housing, health, education and an adequate standard of living, on the other hand, were conceived as mere “programme rights” to be achieved step by step through progressive implementation.

As WWII had started as a European war between fascist and democratic States, Europe felt a particular responsibility to prevent another war and catastrophe like the Holocaust through economic and political cooperation and the protection of human rights. While the European Communities of the 1950s aimed at preventing another war through economic integration, the Council of Europe was established already in 1949 as a political organization based upon human rights, pluralistic democracy and the rule of law. The Council of Europe was a Western European organization, which defended these “European values” against any form of totalitarianism, whether fascism (as practiced at that time in Spain and Portugal) or communism (as practiced in a growing number of Central and Eastern European States).By adopting the European Convention on Human Rights(ECHR) in 1950, which only contained civil and political rights, the Council of Europe left no doubt that it was a Western organization, which did not feel bound by the indivisibility and interdependence of all human rights, as expressed in the Universal Declaration. Economic, social and cultural rights played and unfortunately still play in the Council of Europe a subordinate role. The European Convention with the European Court of Human Rights in Strasbourg, which decides in a legally binding manner on tens of thousands of individual applications per year, is the light-tower of human rights protection in Europe, while the European Social Charter of 1961 and its monitoring system is much weaker and very little known to the public. Nevertheless, this is the time when the social welfare state, based on the economic policies of John Maynard Keynes, was developed in Western Europe, North America and other industrialized nations. The architects of the social welfare state or a market economy with a human face were, however, not even aware that they were implementing economic, social and cultural rights, as these rights were primarily associated with the Soviet Union and its allies.

During the Cold War, human rights were the subject of fierce ideological battles between Western and Communist States, and to a lesser degree, the newly independent States of the Global South. Nevertheless, this was the time when human rights were codified at the universal and regional level. In addition of the two Covenants of 1966, the United Nations adopted a number of universal human rights treaties, such as the International Convention on the Elimination of all Forms of Racial Discrimination of 1965, the Convention on the Elimination of all Forms of Discrimination against Women of 1979, the Convention against Torture of 1984 or the Convention on the Rights of the Child of 1989. These core human rights treaties are today almost universally ratified. On the regional level, the two most important treaties, which were largely based on the European Convention, are the American Convention on Human Rights of 1969 and the African Charter of Human and Peoples’ Rights of 1981.

With the implosion of the Communist regimes in Central and Eastern Europe and the velvet revolutions of 1989, which quickly led to the fall of the iron curtain and the end of the Cold War, a historic window of opportunity opened for a new world order based upon human rights, democracy and the rule of law. The 1993 Vienna World Conference on Human Rights and the Vienna Declaration and Programme of Action promised a new era, based upon the equality, universality, indivisibility and interdependence of all human rights, spear-headed by the newly created Office of the UN High Commissioner for Human Rights. For the first time, the collective security system of the UN Charter was applied in practice and led to new generations of peace-building missions with human rights components and peace-enforcement actions, which also tackled some of the worst human rights violations. Two ad-hoc international criminal tribunals for the former Yugoslavia and Rwanda were established by the UN Security Council as the first ones after the Nuremberg and Tokyo military tribunals and led to the creation of a permanent International Criminal Court in 1998. In the same year, the 11th Additional Protocol to the ECHR entered into force and transformed the European Court of Human Rights into a full-time court which since then has delivered thousands of judgments every year, most of them in relation to the newly admitted former Communist States in Central and Eastern Europe. In 2000, the EU adopted a Charter on Fundamental Rights, and the United Nations adopted Millennium Development Goals, which promised a better future, above all for the poor and marginalized communities in the Global South. Despite the genocides in Rwanda and Bosnia and Herzegovina, which happened before the eyes of UN peacekeepers, one can conclude that never before were human rights advanced in such a quick, innovative and forceful manner than during the 1990s.

Let’s go back to 1989, which was a truly remarkable year in human history. In addition to the velvet revolutions, the world wide web was created, and with the “Washington Consensus”, the World Bank and the International Monetary Fund agreed to adopt the neoliberal economic policies of privatization, deregulation and minimizing the role of the State, which had been advocated for many years by the Chicago School of Economics, thereby replacing the more interventionist economic policies of John Maynard Keynes. This meant that the rapid digitalization and globalization of our world were driven by neoliberal economic and financial policies. As a consequence, the historic opportunity of implementing a new world order inspired by universal human rights, democracy and the rule of law wassoon replaced by a new world order driven by transnational corporations and global financial markets. On the one hand, these policies led to an unprecedented economic growth and global digitalization, which contributed to more prosperity and a significant reduction of poverty, above all in China, India and other Asian States. On the other hand, these policies led to a dramatic increase of economic inequality, which is undermining the social coherence and democratic values of our societies. Radical policies of privatization, which had started already in the US and the UK during the 1980s, include even core State functions, such as the military, intelligence, police, justice and prisons (rise of private military and security companies), as well as providing social security, pensions, health care and education. The policy of minimizing the role of the State, which is often imposed on governments by the international financial institutions, result in drastic reductions in social security and social welfare and undermine the obligation of States to protect and fulfil economic, social and cultural rights, but also civil and political rights. In this context, we observe the rising phenomenon of failed and fragile states, which lead to insecurity, armed conflicts, the rise of organized crime and terrorism. Finally, the deregulation of global financial markets led to unprecedented speculations, tax evasion, money laundering, corruption and the undermining of the banking system, which directly resulted in the global financial and economic crisis of 2008. There can also be no doubt that the neoliberal economic policies contributed significantly to the current climate crisis, the ruthless exploitation of nature, deforestation and the destruction of our environment. The slim neoliberal state has no longer the power and the political will to regulate and control transnational corporations and global financial markets, and international organizations, such as the United Nations, the World Bank, International Monetary Fund, the World Trade Organization or the European Union, which would have the power by concerted efforts to regain political control over global markets, are either at the forefront of neoliberal economic policies themselves or are increasingly undermined by nationalistic and populistic politicians. The Brexit, attacks by the Russian Federation against the Council of Europe, the sidelining of the United Nations in relation to the armed conflicts in Syria, Libya and other regions, and open attacks by the United States against the United Nations, its specialized agencies, such as the World Health Organization, or against the International Criminal Court are only a few symptoms of the current crisis of multilateralism.

The world was in disarray when the Corona virus appeared on the global agenda at the beginning of a new decade, and when the COVID-19 pandemic led to an unprecedented lockdown of the global economy, a fundamental restructuring of our daily life and drastic restrictions of our most cherished human rights. Our world was certainly not well prepared to deal with this pandemic, which has caused already more deaths worldwide than the tsunami as the worst disaster of the 21st century. The most neoliberal States, such as the US, the UK and Brazil, which happen to be governed by politicians, who are used to “solve” crisis situations by spreading fake news and searching for scapegoats, seem to be hit most severely. In Europe, States which had cut down their public health and social security systems most radically, such as the UK, Italy and Spain, encountered much more serious problems to contain the spread of the virus than States, where the public health and social security systems had somehow survived neoliberal policies. Even politicians, who for many years had preached that free markets are much better equipped to solve problems than governments, realized that we need strong and well-functioning States to take the necessary measures and that we should listen to experts rather than populists, fake news and social media in order to cope effectively with this pandemic. It is too early to draw far-reaching conclusions since we are still in the middle of this health crisis and do not know how the coming months will develop. Nevertheless, there is a growing awareness among the people, irrespective of their political opinions and political party alliances, that there is something fundamentally wrong with the way how we are living and that we need to drastically change our economic, political and social world order if we wish to ensure the survival of our planet and a healthy and satisfactory life for our children and future generations.

Where does this leave us with respect to the topic of this conference? What can we learn from this short historical overview for a pan-European future, built upon antifascism as a European confidence building block, mutual trust and good neighbourly relations? One conclusion is obvious: In order to deal with the COVID-19 pandemic and other global challenges, such as the global climate crisis, growing economic inequality or global migration, we need to strengthen, rather than weaken, the regulatory functions of States and of international organizations, both at the global and regional (European) level. Secondly, we need to replace the neoliberal economic politics by a new and more social market economy “with a human face”, which is more responsible towards nature, towards economic equality and solidarity with the poor and marginalized sectors of our societies, at the national, regional (European) and global level. This also means that politics need to regain its power to control and regulate the economy, as has been well illustrated during the COVID-19 pandemic. We need to use this new confidence in a responsible regulatory power of politics to also tackle other global threats, such as the climate crisis. At the same time, we need to strengthen the EU by transferring certain powers in the field of social justice, public health, environmental protection, asylum and migration policies from the member States to the EU institutions. The EU, which, despite the Brexit, is still a major global economic and political player, shall further be entrusted by its member States to pursue and strengthen these socially and ecologically sustainable politics also at the global level, above all in the international financial institutions and the WTO.

With respect to the Council of Europe, which is a truly pan-European organization with currently 47 member States and a pioneer in international human rights protection, we need to introduce economic, social and cultural rights on an equal level with civil and political rights and try to overcome the deep distrust between the Russian Federation and Western European States. This requires confidence-building from both sides. The Council of Europe, as a Western European organization, had quickly opened its doors after 1989 and invited the former Communist States to join. Many States used the Council of Europe as an entry door for quick EU and/or NATO membership, which was not always properly coordinated with Moscow and led even to armed conflicts in Georgia and the Ukraine. Many “frozen conflicts” in Europe, such as Nagorno Karabakh, Abkhazia, South Ossetia, Tansnistria, Eastern Ukraine, Kosovo and the Republika Srpska, can only be solved if the Russian Federation is again better integrated into European politics. The Council of Europe and the Organization for Security and Cooperation in Europe (OSCE), provide the necessary diplomatic platforms, but the political will for mutual confidence-building is still lacking. Antifascism is no longer a meaningful basis for a pan-European confidence block, and in fact it had played this role only for a few years immediately after WWII. If the Council of Europe, with the active support of the EU, would be able to build a pan-European social welfare system, which is based on the indivisibility of all human rights rather than on neoliberal economic policies, then it would resume its pioneering role as a political organization that is uniting Europe on the basis of common European values.

(Exclusive speech for the Conference at the DAW, Vienna, 1 July 2020)

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Making Europe’s future rhyme for the Next Generation

Ursula von der Leyen

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History does not always repeat itself but for Europe it does usually rhyme. Or at least it used to.

In the face of a virus that has taken lives and livelihoods across the world, Europe did not give in to age-old instincts or re-open barely healed wounds from the financial crisis a decade ago. Instead, we chose to pull each other through and invest in a common future.

This is why we can say that last week’s decision by the Leaders of the 27 Member States to endorse the European Commission’s recovery proposal was historic.

Firstly, the numbers. Europe will have at its disposal a recovery tool worth 750 billion EUR to support those hit hardest by this crisis. Called NextGenerationEU, it will invest in a recovery that builds a greener, more digital and more resilient Union for our children. This will be topped up by the EU budget for the next seven years, bringing the overall package to 1.8 trillion EUR.

Secondly, it is historic because of how Europe makes it work. For the first time on this scale, the European Commission – backed by the 27 Member States – will use its strong credit rating to raise money on the capital markets for NextGenerationEU.

In past crises, the better off survived while the most vulnerable paid a heavy price. But this time it has to be different. This time we can only get back to our feet if we all pull each other up. This is why most of NextGenerationEU funds will be distributed in grants to Member States to finance crucial reforms and investment. This is European money supporting projects and people from Flensburg to Freiburg, creating jobs locally from Cottbus to Cologne, and Europe’s strength globally.

Reforms and investment will be tailored to what each country needs and be in line with our wider European goals. For some, this will support reforms in the labour market to boost productivity, while others will focus more on education and training to help people develop the skills they need. Some will invest in improving digital infrastructure and others on transport connections. But, crucially, all will contribute to the goals of the European Green Deal. 30% of the overall 1.8 trillion will be ring-fenced for climate related spending and a new Just Transition Fund of 17.5 billion will help those people and regions who have to make a bigger transformation than most.

The third reason we can use the word historic is because of how the money will be repaid. To avoid sending a higher bill to Member States in the future, Europe should repay the funds through what we call new own resources. These will include a levy on big tech companies, a tax on non-recycled plastics and putting a carbon price on imports coming from countries with lower climate ambitions.

Some people will ask about why Germany should raise or repay money with another country thousands of kilometres away. The answer is simple. Europe’s prosperity lies in its unity, its community and its single market. So for us solidarity is actually self-interest and a euro invested in one country is actually a euro invested for all.

Think about what happens to our tourism industry if people from across Europe cannot afford to come to our Alps or to visit our Baltic Sea beaches anymore. Think about what happens to our manufacturers if they cannot get the parts they need from their suppliers in different European countries. Think about how the crisis has taken its toll on us all – on the wellbeing of people, the solvency of businesses, the functioning of society and the health of every single European economy. And it is not over yet.

This is why we need to act urgently, decisively and collectively. And last week, Europe has shown that it is up to the task. Of course, some will point to the long and difficult Summit and see that as hesitation or weakness. We see it as the ultimate sign of Europe’s unique strength.

Just take a step back and look around. Nowhere else in the world could 27 different countries even discuss financing their recovery and future together. We did it over one long weekend. At this very fragile moment in history, being in Europe is the best place to be. And now we need to keep it that way for all by working with governments and parliaments to bring this recovery to life.

Our Union should always be judged on what it can offer for the future. That vision of a common future enabled us to take every bold step in our history: uniting Europe after the Second World War or the end of the Cold War, creating our common market and introducing our common currency. Today, it is that same pioneering vision enabling us to make another historic step for our Union.

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