Open strategic autonomy and the enlargement of the European Union were central points of discussion at the informal meeting of European leaders in Granada on Friday 6 October (see EUROPE 13260/14).
The ‘Granada Declaration’ they adopted addresses the issues of European ‘sovereignty’, referring to resilience and developing the EU’s competitiveness, in the same vein as the Versailles summit in spring 2022 (see EUROPE 12909/1). But it also sets out the ambitions of a future enlarged Union.
“Our priorities have changed since the Russian invasion of Ukraine, the energy crisis and the pandemic crisis”, argued the President of the European Parliament, Roberta Metsola, on her arrival at the summit. “We need a budget tailored to the challenges”, she added, referring to the mid-term review of the 2021-2027 Multiannual Financial Framework (MFF), which was also discussed by the leaders and is due to be debated at greater length at the European Council meeting on 26 and 27 October in Brussels.
“We need to look carefully at how we can ensure that our Europe is sovereign, that it has its place in the world”, and that Europe can respond to the problems faced by its citizens, outlined German Chancellor Olaf Scholz more broadly.
Boosting the EU’s competitiveness
The Granada Declaration cites the importance of preparing for future crises, against a backdrop of growing environmental and climate risks, as well as geopolitical tensions. It also highlights the sustainability of the European economic system and anticipates the future challenges and opportunities of the green and digital transitions.
The Estonian Prime Minister, Kaja Kallas, emphasised the importance of artificial intelligence in boosting Europe’s competitiveness, but also the need to increase defence capacity and spending, “because that is the reality in which we are living”. The President of the European Commission, Ursula von der Leyen, pointed out that the EU institution would be issuing a defence industrial strategy very shortly (probably at the beginning of November).
She was keen to add that, in terms of energy, Europe had “moved mountains by eliminating Russian fossil fuels, increasing investment in renewable energies”, but also by increasing the resilience of the European value chain with texts such as the ‘Chips Act’ and the Critical Materials Act.
However, Ms von der Leyen called on the Member States to make progress on the reform of the electricity market, arguing that this reform should promote the EU’s competitiveness vis-à-vis third countries and not rivalry between its members (see other news).
The President of the European Council, Charles Michel, reiterated the importance of continuing to engage with the rest of the world. “We believe in a multipolar world [...], in collaboration with what is known as the ‘Global South’ ”, he said.
Preparing for a Europe with more than 30 members
European leaders have also begun to reflect on the changes needed within the EU to be able to integrate new Member States under the right conditions.
“Looking ahead to the prospect of a further enlarged Union, both the EU and future Member States need to be ready. Aspiring members need to step up their reform efforts [...]. In parallel, the Union needs to lay the necessary internal groundwork and reforms”, states the Granada Declaration. The EU27 have undertaken to define their long-term ambitions and the means to achieve them.
“It’s high time we had a conversation within the EU to say what we need to do”, said Ms Metsola, adding that what currently works with 27 members will not be possible with 32, 33 or 35.
In a speech in Bled (see EUROPE 13237/8), Mr Michel set the year 2030 for accession, but no date is given in the declaration. Some Member States are not in favour, pointing out, as Ms von der Leyen does, that the accession process is based on merit.
The accession of new countries raises questions about the functioning of the EU’s institutions, policies and priorities, and about the EU budget.
“I’m glad we’re having these discussions so early on, because it’s clear that many issues cannot be resolved easily”, warned Olaf Scholz.
In his view, over and above issues relating to the accession process for candidate countries, Europeans must “make the European Union itself fit for the future”. This applies in particular to decision-making structures and governance issues.
The German Chancellor felt that it was not possible to increase the size of the college of Commissioners indefinitely, explaining that a pragmatic solution had to be found. He also pointed out that it was not possible to be content with unanimity when the EU Council took decisions on foreign or fiscal policy.
Luxembourg Prime Minister Xavier Bettel, for his part, said he was opposed to the end of unanimity on tax policy.
The accession of new countries to the EU will also have an impact on the budget, with the financing of important policies such as the Common Agricultural Policy and cohesion policy.
“Everyone knows that all the countries receiving net payments today cannot count on this always being the case in the future, but that they will also have to contribute to financing the growth processes in the candidate countries”, warned Mr Scholz.
According to the Financial Times, an internal EU study estimates that adding the six countries of the Western Balkans, Ukraine, Moldova and Georgia to the Multiannual Financial Framework would amount to €256.8 billion.
“We are currently supporting these countries. If their prosperity increases, there will be no point in supporting them”, noted Ms Kallas. She pointed out that, while her country’s GDP before joining the EU was 31% of the EU average, it is now 80%.
See the Granada Declaration: https://aeur.eu/f/8y5 (Original version in French by Pauline Denys and Camille-Cerise Gessant)