THE BIG READ: RULES OF ENGAGEMENT
past decades, Europe has established a tradition in which diversity has developed into a strength and a canon of values has emerged that respects other positions. These are unique and have the potential to deliver real competitive advantage. Europe follows rules, remembers established values and norms despite all future-oriented transformation, and keeps its promises. In international cooperation, these pillars of trust are extremely important and stand the test of time.
Europe brings with it strong starting conditions – probably stronger than we think. Among other factors, Europe benefits from a large single market of 450 million consumers and has shown that it can find effective financial solutions, even in a crisis. In addition, Europe is built on a strong foundation of established democracies and the rule of law, and has a large pool of well- educated talent in its workforce.
To realise this potential, it is important to ensure that these strengths are played to the full, that sovereignty is secured in key areas, that any locational disadvantages are addressed and that opportunities for growth are seized. While at first glance this may appear to be a complex and extensive
catalogue of tasks, the individual elements are tangible and well known.
The joint approach to financial support during the pandemic demonstrated how quickly Europe can make decisions when it wants and needs to.3
With the
same determination, projects such as the banking and capital markets union must be implemented swiftly to develop the full advantages of the community. To preserve European sovereignty in areas
such as data protection and payments, a variety of initiatives are being implemented, such as the creation of a pan-European payments infrastructure for consumer payments. These issues should not be seen as desirable projects but as geostrategic necessities and be given appropriate focus.
The joint approach to financial support during the pandemic demonstrated how quickly Europe can make decisions when it wants and needs to
In addition, Europe should strive for fair framework conditions for European companies. This is a prerequisite for the company with the best idea to win the competition and not the one with the best location factors. In the short term, for example, the location disadvantage of ‘transformation capital’ must be addressed in order to make the upcoming structural change in many sectors financially possible. This push is not based on a call for ‘more state’. Rather, it is about the state’s own task of setting the right framework conditions for the economy and providing the necessary infrastructure so that companies in the region can develop their full potential.
Furthermore, opportunities for growth must be consistently exploited. Cooperation with the Middle East, Africa and countries such as Japan, India and Australia should be strengthened. In addition, the emergence of true ‘European champions’ should be facilitated. The collapsed merger of engineering corporates Siemens and Alstom was a good example of how Europe is stifling its own potential.4
It needs large
companies that can rival the much larger Chinese and American ones in terms of investment resources to defend Europe’s role in the global economic order.
We Europeans must finally compete to win, not just to take part. The next few years will set the course for the second quarter of the 21st century, and standing up for our values can only be done from a position of strength. To play to our considerable potential − the strong cards we hold − we need a combination of pragmatism, courage and confidence in our own strengths. We have it in our own hands: all-in for Europe.
Stefan Hoops is Head of the Corporate Bank at Deutsche Bank
Sydney, Australia. Europe’s ties with countries such as Australia must be strengthened
Sources 1
See
https://bit.ly/33OsjZD at
dbresearch.com 2 See
https://bit.ly/3frEiBG at
flow.db.com 3 See
https://bit.ly/3tTpRf9 at
flow.db.com 4 See
https://bit.ly/3tSBhzF at
ec.europa.eu
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