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The European Union is in many strategically important issues far in front or sometimes even on a different path to the rest of the world’s major economies. There is good reason to ask if some of the ambitions and choices are worthy and beneficial for Europeans and whether other economies are on a smarter track. Manufacturing is still the basis of the European economy but it is under tremendous pressure from other parts of the world, namely emerging economies. Instead of trying to support the European manufacturing industries to compete, however, European policy makers impose new demands and additional costs on the industry. The most striking example of this is the European climate policy. The EU will unilaterally place on the shoulders of its manufacturing sector, which competes in an open international environment, huge costs that do not find their match anywhere else in the global market. This will lead to increased imports from countries with less stringent climate policy. The result for the EU will be the importing of unemployment and the exporting of emissions. It is commonly acknowledged that Europe has neglected its energy sector for many years and became dangerously dependent on energy (natural gas) imports. There is no real European energy market that can guarantee the security of supply of natural gas and competitiveness of energy prices under any circumstances. In the agro-food sector Europe should avoid repeating the mistakes that have occurred in the field of energy. Food and biomass in general will be even more critical products in the face of the growing food demand and the global challenge of climate change. European agricultural production capacity must be maintained and kept in good shape. We must be to a reasonable extent self reliant in inputs to agriculture. To become, for example, dependent on imports of fertilizers from Russia, China etc. would eventually mean dependency on food from other countries too. In many ways the EU should go back to basics. The well-being of EU-citizens can only be guaranteed if enterprises, including especially the manufacturing sector, remain globally competitive. Sufficient and competitive energy and captive food production are absolute necessities for Europe. Europe’s politicians must also keep in mind that better environmental protection and climate change mitigation go hand in hand with the higher material well-being of society. There are plenty of examples globally that poor and declining economies cannot bear their responsibilities when it comes to these crucial areas. The coming decades will see billions and billions of investments required for climate change mitigation. Competitive societies are needed to generate the surplus income in households and enterprises which are essential to finance this investment. Europe’s leaders must keep their heads cool in front of the Copenhagen climate change conference in December. Only through a binding international agreement to reduce emissions globally and with a balanced timescale across the globe can Europe maintain the well being of its citizens and achieve its environmental goals without sacrificing their own industries.
What the Chiefs Say is a new public affairs platform designed for senior executives from leading organizations to voice their policies and priorities. In this first issue, business leaders present their expectations and concerns on the direction of European policymaking to the incoming European Commission and the new European Parliament.
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Over 150 think tanks and universities across Europe contribute authors and ideas to Europe’s World. This section showcases their own publications and reports and is also a bulletin board for their upcoming events.
What do YOU think are the key policy problems that Europe must resolve? What ideas need a Europe-wide airing? This section is open to your contributions.