Several European finance ministers called on the European Union to remedy its weaknesses and capitalise on its strengths instead of engaging in a race towards protectionism, if it wants to continue to compete with its main economic rivals, they said, on Monday 20 January, upon their arrival at the Eurogroup meeting, at the same time as Donald Trump’s inauguration was taking place in Washington.
“We must play to our strengths”, declared the President of the Eurogroup, Paschal Donohoe, at the end of the Eurogroup, which debated the economic priorities for the euro area. “The best response for the euro area economy is to redouble our efforts towards what we’ve already committed to do: deepen the foundations of the euro”, he added. He also stressed the importance of “stable rules” for world trade.
The Belgian minister, Vincent Van Peteghem, said that Mr Trump’s inauguration should be “a wake-up call” for Europeans to take action to close the productivity gap between the EU and the United States. The ‘Letta’ and ‘Draghi’ reports on strengthening the Single Market should provide a compass for moving forward. The threat of “retaliation” if Donald Trump signs new decrees imposing customs barriers on European products should not be put forward first, said Mr Van Peteghem.
The Irish minister, Jack Chambers, and the Dutch minister, Eelco Heinen, stressed the importance of simplifying European regulations, an issue that will be debated on Tuesday at the Ecofin Council.
Germany underlined the importance of international trade in diversifying outlets for European businesses. The German economy is export-oriented. “We are always exposed to tariffs. That’s why we are in favour of signing free trade agreements, especially with Mercosur”, said German Finance Minister Jörg Kukies.
His Spanish counterpart, Carlos Cuerpo, is in favour of a “strategic alliance” with the Mercosur countries and Mexico. “The EU must look for the European angle and not just react. It must push forward its own agenda”, he stressed.
As for the French minister, Éric Lombard, he spoke of the importance of Europeans adapting to new technologies, mentioning in passing the Artificial Intelligence Action Summit, which will take place in Paris on Thursday 6 February.
On Monday evening, the Polish Finance Minister, Andrzej Domański, invited his counterparts to a dinner devoted to transatlantic relations (see EUROPE 13561/2). “There is really a lot of work to be done here”: reduce energy prices and lighten the regulatory burden on businesses, he said, advocating that Europe should “remain united” in its reaction to the first decisions of the new Trump administration. (Original version in French by Mathieu Bion)