Europe is surrounded by war. This has surprised many Europeans, who thought that nationalism had died in 1945. Nationalism is about the nation as an absolute idea. The EU was founded on the opposite belief. If a country shares our values, we respond favourably.
There is no peace at Europe’s borders, around the Mediterranean, in Asia and in Africa. We all have to fight for the values on which every civilisation is founded. It is not a clash of civilisations, but a fight against barbarism.
In Europe we know what it means to fight for humanistic values. We had to do this 70 years ago. Nazism was a common enemy then, as ISIL is now.
The existence of ISIL creates the perception that we are living in a dangerous world. It makes people afraid, and fear is never a good counsellor. That's why we all have to work together: sensible people of different beliefs. We need a revolution of the moderates.
The events on our borders show how interdependent we all are. There is no growth without stability. That’s why a genuine union remains of utmost importance in Europe. We overcame the existential threat to the euro zone, but we have to continue our work. A single supervision on all euro zone banks is an integral part of a monetary union, together with a common resolution mechanism for banks in trouble.
We need more instruments to coordinate policies. A common currency needs common policies. But we also have to strengthen the real economy. We don’t make full use of the potential of our single market. There is still far too much fragmentation.
Energy is a good example. We are very dependent on one supplier. The current crisis in Ukraine is a good occasion to alleviate this dependency. Energy is also closely related to climate change. Development of renewables will diminish this import dependency. Innovation is key.
We also need one digital market in Europe. In the telecoms industry we miss the economies of scale by having too many competitors. The time of national champions is over. The future belongs to European champions.
The return on such policies is huge. This argument is valid for trade. I will speak on this subject tomorrow at the Dubai Multi Commodities Centre, which has created a trade hub focused on commodities.
Europe is an open continent. The EU has not given in to protectionist tendencies. That’s why we are negotiating trade agreements with the US, Japan and Brazil. We concluded such agreements with Canada, Singapore and Korea. We have to convince our people that free trade is good for growth. The countries in the world engaged in globalisation are pulling millions of people out of poverty. Trade is spurring productivity. Trade necessitates competitiveness. It is a fundamental choice of economic strategy.
It also means that no country can survive on its own. Politically, countries are independent. Economically, they are interdependent. In the EU we organised this interdependence deliberately and draw political conclusions from this evolution. This trend is irreversible.
Our growth has to be more labour intensive. And it is possible. A reform of the labour markets brought Germany to an unemployment rate half as high as France. More jobs creates more growth, which brings down debt without cuts or higher taxes.
It is also a dramatic factor in fostering social cohesion. It brings hope in our societies. And hope is an impetus for further growth.
Our growth has to spread its benefits. Inequality is inevitable, but excessive inequality can be explosive. Unfortunately, poverty is on the rise in the EU.
Our new policies to combat tax evasion will contribute to more fairness. The automatic exchange of financial data is a qualitative jump forward. The fight against terrorism gives a new impetus to eliminate money laundering and tax paradises.
Economic growth, employment and social cohesion are the building blocks in the reconciliation of European citizens with their national political systems and with the European project. It is needed after years of crisis.
The EU restored stability and embarked on a growth and jobs strategy. It needed courage and vision. The models of today can be the failures of tomorrow. Actually there are no models. We can learn from each other, from the successes and failures.
Europe is going its own way. In peace, not threatening others, leaving a controversial past behind it, sharing values with some and interest with others, knowing that only strong economies can make their social models sustainable.
Herman Van Rompuy is the former president of the EU and former prime minister of Belgium. He is the inaugural speaker at the Dubai Diamond Conference, which opens on Tuesday
