At the invitation of the Bruegel think tank and the Financial Times, a number of candidates heading the lists of European families debated, on Tuesday 21 May, the economic priorities for the next legislative cycle in Brussels as well as the means of financing them.
The candidates from the European People’s Party (EPP), Germany’s Ursula von der Leyen, the Party of European Socialists, Luxembourg’s Nicolas Schmit, and the platform of liberal parties, Italy’s Sandro Gozi, argued in favour of deepening the internal market, particularly in the digital sector, and accelerating the decarbonisation of the economy. They wanted to tackle the difficulties encountered by SMEs by simplifying European rules.
Ms von der Leyen emphasised the importance of “access to capital” from the private sector, which is currently insufficient. For Mr Schmit, the social dimension, which is a factor in competitiveness, must not be forgotten if the EU’s specific economic model is to be preserved. Criticising the EPP for its lack of political will to deepen the single market, Mr Gozi said that citizens should be able to benefit from the opportunities offered by this market, particularly in border areas where there are still too many obstacles to the development of trade.
The only participant hostile to further integration in the EU, the far-right European candidate, Anders Vistisen from Denmark, advocated massive deregulation, starting with the texts of the ‘European Green Deal’, the ‘GDPR’ regulation and the ‘working time’ directive, these rules reflect the EU’s ability to cause self-harm’ in the face of international competition. In his view, there needs to be an end to excessive taxation and to prevent any ‘Tobin tax’ that would hit high earners.
Economic security. Asked how to strengthen the EU’s economic security, candidates from pro-European families claimed it was necessary to develop the technologies of the future and produce the goods needed to reduce dependence on international competitors. They rejected protectionism, while declaring an end to Europe’s naivety on trade issues.
The Covid-19 pandemic showed the extent to which Europeans were dependent on “pharmaceutical products and semiconductors”, said Mr Schmit. “We believe in competition, but it has to be fair”, noted Ms von der Leyen. With regard to the European Commission’s current investigations into Chinese consumer goods, she said that, unlike the United States, the setting of customs barriers at the entrance to the single market would be “in line with the level of damage” inflicted on European industry (sse EUROPE 13413/19). Mr Gozi advocated the creation of a genuine “European Sovereign Wealth Fund” and “reciprocity in public procurement” between the EU and third countries.
Mr Vistisen said he was in favour of negotiating free trade agreements with the United States, South America and South-East Asia. Referring to the debate in the United States, he called for a ban on the Chinese application Tik Tok. “Either you sell, or you stay out of the EU”, he declared.
Budget. The Danish MEP also criticised the other candidates who advocate from the outset an increase in the EU budget after 2027, potentially via a common debt, to finance future political priorities. The choice is this: either we cut the budget or we give up on enlargement, he said, convinced that the EU, bogged down in bureaucracy, was living “beyond its means”.
Ms von der Leyen put forward a methodology: first define the priorities - “defence and security, competitiveness, the fight against climate change” - and then think about how to finance them. In her view, either more national contributions or more own resources will be needed for the Multiannual Financial Framework. She said she is in favour of a link between the granting of European funds and the implementation of reforms in the Member States. Mr Gozi called for an end to the “dogma” of national contributions capped at 1% of the EU budget. He advocated a joint loan to support the European defence industry, citing a proposal by Estonian Prime Minister Kaja Kallas. And he insisted on strengthening the rule of law “conditionality” in the granting of European funds. Mr Schmit pointed out that strengthening defence and security in the EU was “not possible without a common debt”. “If we are not capable of investing, we will lose” the race for the technologies of the future, he added, saying he was in favour of “increased own resources” to increase the stability of the EU budget.
To watch the debate: https://aeur.eu/f/cah (Original version in French by Mathieu Bion)