Issue No 11
January-April 2025
www.eesc.europa.eu/rex
Dear Reader,
As was widely expected, the outcome of the US election was the beginning of a profound geopolitical shift on the world’s stage. The new American administration has introduced a conception of international relations that deviates strongly from the traditional values of multilateralism and primacy of international institutions, values that the European Union has always defended with conviction.
But there is more: in the new conception of American foreign policy, relations between the different parts of the world must be based on force and on a bilateral dialogue between great powers, with a reduced role for traditional allegiances, including military alliances, and trade agreements. It is not good to be unprepared in the face of time-changing events, so it is essential for the European response to be rapid and effective.
First of all, in the face of weakened transatlantic relations, it is necessary for Europeans to narrow their ranks and, at the same time, to open up more and more to the outside world: it is now clear that we need a common European defence to ensure our security. When it comes to trade, American tariff policy is creating new axes, such as the one hitherto unheard of between China, Japan and Korea, and is inducing important countries such as Canada and Mexico to seek other ways forward. This is what we have to do too: let us show that we believe in multilateralism by diversifying our trading partners through fair, environmentally sustainable and mutually beneficial trade agreements!
The European Commission has proposed a package of tariffs for American products. While it is vital to continue negotiating to avoid a large-scale trade war, it is also important to have something conspicuous to put on the table: Europe is the largest market in the world – the time has come to use this potential in order to protect European interests. I am proud to remind you that, even before the tariff madness started, in opinion REX/594, the EESC had pointed out the need for ‘strong leadership, including making use of existing trade-defence tools if tariffs are imposed illegally, including retaliatory tariffs, economic diplomacy action and WTO challenges’.
In a recent intervention at the Delphi Economic Forum I pointed out that, whilst we welcome the US decision to pause this tariff increase for 90 days, it is clear that such uncertainty and volatility are extremely damaging to our businesses. Our SMEs, which constitute 99% of EU companies and provide more than 85 million jobs, are particularly vulnerable and risk losing access to international markets and supply chains. The EU has everything to gain from clear, predictable, rule-based trading conditions, and so do our partners around the world.
The EU must finalise and implement as soon as possible all pending multilateral trade agreements (Mercosur, Samoa, New Zealand, Kenya, etc.) and lead the international trade agenda: a step of significant geopolitical importance.
Finally, the EU must take the lead on the international stage to advance the values of coexistence which are under threat today, and to show that it has something to say in the peace negotiations for Ukraine and the Middle East. The European contribution can make a difference, and this is why Europe needs to speak with one voice. Intergovernmental consultation is no longer enough.
In times of exasperated sovereignism, this simple message may even be indigestible to part of the public opinion, but courageous and visionary politicians will need to repeat it and explain it for as long as it takes: we need a President and a government for Europe, a European foreign policy and a European army with a European Chief of Staff.
We need to create Europe, because it is the only way we have to remain European, that is, to remain the citizens of a free and peaceful continent in which democracy and the rule of law reign, in which those in need enjoy health care at affordable prices, in which those who are elderly receive a pension and those who are unemployed are helped to find a job instead of plunging into poverty and inactivity. Not to mention the need for a cutting-edge education system that is able to attract the best talents, even those who have hitherto chosen American universities. This turmoil in international relations is a big challenge, but also a clear opportunity for the EU, which can welcome brilliant researchers and strategic investments offering better conditions than on the other side of the Atlantic.
If we create Europe, we can reverse the current trends, which are so unfavourable to us Europeans. But it has to be done quickly.
Yours sincerely,
Dimitris Dimitriadis
REX Section President