eu2012.dkA Presidency at work for growth in Europe

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By Nicolai Wammen
Minister for European Affairs, Denmark

Dark clouds hung over Europe on 1 January 2012, the day we took over the EU Presidency from Poland. The cooperation in the EU was in the midst of a crisis. Just a few weeks earlier, the EU Heads of State or Government had reached agreement on the content of the Fiscal Compact at a summit in Brussels. However, the UK and the Czech Republic chose to remain outside the Compact. This triggered a good deal of murmuring about the first signs of a split in the EU cooperation – a so-called “two-speed Europe” – which in reality could end up jeopardising the entire cooperation in the EU.
We decided from the outset that our primary role as holder of the EU Presidency would be to act as a bridge-builder. We needed to build bridges between the different positions in the Council. Build bridges between the euro area countries and the countries outside the single currency. And build bridges between the European institutions.
Our approach was that the machinery of the EU should be put to work. The cooperation had to show that even in times of numerous and diverse challenges the EU was still able to deliver results that demonstrated the value of European cooperation. This did not necessarily entail coming up with new, grand and gilt-edged plans, as this is not what is needed right now, but instead delivering tangible results benefiting citizens and businesses in Europe.
We therefore formulated a Presidency programme entitled “Europe at work”. Europe would need to roll up its sleeves and get down to work for Europeans, among other things to ensure that more jobs were created in Europe. In the programme, we defined four fundamental priorities for our Presidency: a responsible Europe, a dynamic Europe, a green Europe and a safe Europe. These were headings that encapsulated the challenges that Europe faced, and which Europe would need to prioritise during a period of time characterised by economic crisis and global shifts of power.
Have we solved all the EU’s problems? No. Have we brought Europe forward? Yes. We have delivered a professional, collaborating and transparent Presidency. And we have delivered results on, among other things, strengthened economic and financial supervision, capital requirements for banks, the big energy efficiency directive, candidate status for Serbia and opening of accession negotiations with Montenegro.
The agreement we reached regarding the so-called “two-pack” plays a key role, as it strengthens euro area cooperation and brings to completion the reform of EU economic governance. On top of this is the Fiscal Compact, which was adopted at the European Council in March. The Fiscal Compact undoubtedly represents a milestone in European cooperation. Member States have committed themselves to introducing national legislation that ensures their respective national budgets to remain in balance, thus keeping their economy in order. This is something in which we all have an interest, as it will enable us to secure a stable economic development in Europe.

PUBLIC FINANCES VS. GROWTH

During our Presidency, the debate about consolidation of the public finances and promotion of growth has, however, often been presented to the public in very black and white terms, with a tendency towards portraying Mrs Merkel and Mr Hollande as opponents, each in their own corner. But this is a false portrayal. The one does not make sense without the other, which is why we need a combination of both.
No one in Europe is against growth. The challenge lies in creating growth without the continent falling deeper into debt. It is a question of ensuring responsible growth, and it is this approach we brought to the negotiating table.
We were therefore pleased that we could conclude our Presidency by securing agreement in the European Council on 28-29 June on the adoption of a Compact for Growth and Jobs. This growth package represents the culmination of the Danish EU Presidency’s efforts to promote growth and employment in the EU.
Throughout the Presidency, we also worked tirelessly to modernise the common driver for growth -the Single Market. The results we have achieved have reduced the administrative burdens on European businesses.
Considerable effort has also been put into the negotiations regarding the EU Multiannual Financial Framework for 2014-2020. Even though these negotiations will not be finally concluded until during the Cyprus Presidency, the Danish Presidency has worked hard to ensure that the Multiannual Financial Framework prioritises areas such as education, innovation and research; areas that can contribute to fostering future growth and prosperity in Europe.
It is no secret that the Danish Presidency has assigned high priority to the green agenda. And in some areas our ambitions exceeded what some countries were prepared to accept. However, we fought tenaciously for our case, because Europe will need to keep its position as standard bearer for the environment and climate agenda. There are quite simply several million potential jobs within green growth, and these are jobs that Europe can not afford to lose in a competitive global market.
One of our greatest results was achieved within the green agenda. We reached agreement with the European Parliament on the Energy Efficiency Directive; an agreement that can create several hundred thousand jobs in Europe and reduce energy consumption by approx. 17 per cent by 2020. Added to this is the adoption of the EU’s Energy Roadmap 2050, in which the EU has sent a strong message to the markets and investors about our long-term commitment to renewable energy and energy efficiency. This is something which I believe the Danish Presidency can be proud of.
Citizens’ rights are and will remain one of the cornerstones that European cooperation must safeguard and continue to promote – also in the rest of the world.
We were able to secure the adoption of historic sanctions against the regimes in Iran and Syria, which emphasises the EU’s wish to put pressure on the parties to seek negotiated solutions.
We succeeded also in securing the decision to grant Serbia candidate status in the EU as well as deciding to open accession negotiations with Montenegro. This is important in our continued efforts for a stable development in the Balkans and for a stable Europe. However, membership of the EU does not follow automatically. There is still a large reform process ahead for both countries on their way towards the EU.
Altogether, the Danish Presidency achieved more than 250 concrete results, a number of which I have here tried to highlight and explain. These results demonstrate that the EU cooperation functions even in the most difficult of times.
Even though the crisis is far from over, we have taken the first steps on the path to exit the crisis and introduced rules and mechanisms designed to prevent Europe from being thrust into a similar situation in the future. With this in mind, I look back with satisfaction on a successful Danish EU Presidency.