Reflection Group

With all eyes on Europe’s last-ditch efforts to save the eurozone from collapse, it is hardly surprising that a thoughtful, 46-page report on the European Union’s long-term future has gone almost completely unnoticed.  But the study, commissioned by EU heads of state and government in 2007 and published last weekend, is worth taking a look at.

It was written by a group of 12 experts led by Felipe González, the former Spanish premier, and including Mario Monti, the distinguished former EU commissioner, Jorma Ollila, chairman of Finland’s Nokia mobile phone company, and Lech Walesa, the ex-Polish president and hero of the opposition Solidarity movement in communist times.  There was a good mix of northern, southern, western and eastern Europe on the panel.

They begin with a disturbing observation: “Our findings are neither reassuring to the Union nor to our citizens: a global economic crisis; states coming to the rescue of banks; ageing populations threatening the competitiveness of our economies and the sustainability of our social models; downward pressure on costs and wages; the challenges of climate change and increasing energy dependence; and the eastward shift in the global distribution of production and savings.  And on top of this, the threats of terrorism, organised crime and the proliferation of weapons of mass destruction hang over us.” Read more

What does 2010 hold in store for the European Union?  With people in Brussels only just drifting back to work after a couple of weeks of snow, sub-zero temperatures and seasonally adjusted flu, it seems too brutal to plunge straight into topics such as the “2020 Strategy“, the “Reflection Group“ and other elusively named EU initiatives of which we are certain to hear more as the year moves on.

What one can say is that the EU ended 2009 feeling rather more pleased with itself than perhaps it had expected 12 months previously.  Despite suffering the most severe economic contraction in its history, the EU avoided a meltdown of its financial sector, stuck fairly well to its rules on fair competition and free trade, and even witnessed a return to growth in certain countries. Read more