With the Parthenon symbolizing the birth of European civilization in the background, former Italian prime minister and current dean of IE University’s School of Politics, Economics and Global Affairs, Enrico Letta painted a picture of his ideal for the European Union’s future, at an event organized by Kathimerini on Tuesday afternoon.
On what may be the prettiest rooftop venue in Athens, at the restaurant of the Dolli hotel, the fervent Europeanist sat down with Kathimerini English Edition Editor-in-Chief Tom Ellis for a very interesting conversation. Leading political, economic and business figures sat in the audience.
Letta believes that autonomy – in energy, defense, capital markets, telecoms and technology – is the only way for Europe to hold its own against major players like Russia, China and other emerging forces. The EU, he said, is facing an existential threat and needs to take a serious and cohesive look at what its next steps will be. “If we do not act, we will soon see the signs of decline,” he warned.
Always careful and pragmatic in his phrasing, Letta was blunt about what this entails, as he had already analyzed in his famous report published two years ago. Back then – even before the war in the Middle East – he had described a roadmap for economic integration to move forward much more decisively through joint investments, a unified digital market and harmonized legislation.
He also referred to a series of 42 commitments that were discussed and adopted by Europe’s entire leadership at an informal summit in Cyprus on April 24. One such commitment was to make it easier and faster to establish a company in any EU country with minimum red tape and more incentives (as the state of Delaware has done in the United States, much to its benefit). Is this feasible in the EU?
Italy’s former premier responded that when politicians speak of plans without a specific timeline for their implementation, you cannot rely on something being done. Now, though, it seems that Europe (and its politicians) have realized that we are running out of opportunities to come out ahead. No matter how much politicians want to flatter their domestic audience, they know that the road ahead is perilous.
Letta noted that Europe has always been strongest when it has been guided by visionary policies that were successfully implemented. This was the case with the common market, the common currency and joint borders. Now the Europeans are trying to catch up. Instead of planning their next initiatives, they are taking their cue from the United States and other powerful players.
[Nikos Kokkalias]
Cooperation is the cornerstone of economic integration, according to Letta, who argued that this should not be limited to EU powerhouses Germany and France, but also extended to smaller countries, because it is this combination of different speeds that will give the project added dynamism. “Everyone needs to participate,” he stressed, saying “we need more Airbuses.”
Letta gave several examples to support his point. He noted that 80% of the €140 billion allocated by the EU to support Ukraine has ended up supporting factories in the US and Turkey. Therefore, if we do not deepen economic integration, then in sectors such as technology, defense and energy, we will be condemned to pay the price of our shortcomings to those who have already made these leaps ahead of us. And that cost is relentless. “Imagine having to comply, for example, with someone’s views because they control the satellite upon which our telecommunications depend, and could cut us off at any moment,” he argued, in what was widely seen as a tacit reference to Elon Musk.
But is the problem ultimately about EU legislation and overregulation? Not entirely, says Letta.
“It is also our narrative. The United States is one country. China is one country. But the EU has a common market with 28 countries,” he said, adding that having a common currency does not mean that we have made sufficient progress in working together and using our strengths to their best advantage.