The EU must become the new free world

At this critical juncture in history, developments across the Atlantic are disrupting not only the political landscape but also the economic global order. It is time that we reassess globalisation as we once understood it.

Indeed, when it comes to the newly-proposed tariffs, I must admit that I am still trying to comprehend the logic behind the formula used. The elasticities involved do not seem to make mathematical sense, at least when it comes to parametrisation. Even the United States relies on certain industries beyond its shores, meaning the elasticity of supply, in the short term, is clearly inelastic. While it may adjust in the long term, this is unlikely to occur during President Trump’s tenure. Relocating capital from countries such as China requires time. And even if they do, China is labour abundant relative to the US. It is the basic Heckscher-Ohlin model. Therefore, whoever devised the formula for rebalancing trade either failed to distinguish between elastic and inelastic supply or sought to present an academically flawed model. Unless they used the Leontief Paradox, which shows that US exports are labour-intensive despite being a capital rich nation. And determined that in the short run labour is perfectly mobile and easily replaced.

Furthermore, the United States has embarked on a narrative that is somewhat concerning. Politicians, when in positions of privilege, must act to protect, not ridicule, minorities. We are witnessing increasing instances of ridicule directed towards minority groups, particularly transgender individuals. In response, Europe must enhance its global influence and position itself as a committed defender of human rights. The EU must speak with a stronger, more assertive voice. The EU is not a security project. Far from it. The very raison d’être of the European Union is to uphold and protect human rights, with particular attention to the rights of minorities. Its foundations were laid upon the European Charter of Human Rights. What I currently perceive is a weakening, rather than a strengthening, of the Union’s reason of being. Its identity is in crisis. While it is true that the EU must reform its economies, we must not lose sight of its core values. Member states must, however difficult this may be, embrace and uphold human rights. These include, among others, the freedom of assembly and freedom of expression. It is deeply troubling to witness EU leaders undermining these rights.

I am following closely the constitutional amendments being proposed in Hungary, particularly those affecting the freedom of assembly for the LGBTQ+ community. The European Commission must intervene and prevent Hungary from advancing such regressive legislation. These developments represent a distortion of the EU’s identity. The EU Commission cannot remain silent simply for the sake of progressing initiatives such as ReArm Europe, or whatever terminology is currently now in use. The European Union is not a security alliance. The EU has a duty to protect its citizens with any instruments at its disposal. EU officials must perform and uphold the responsibilities entrusted to them. This is what they are paid for. We are not compensating EU commissioners to deliberate on the timing of daylight saving or emissions reports. We are paying them, including the President of the European Commission, to uphold the commitments they make and the principles they proclaim in their public addresses. If not, then perhaps what Ursula von der Leyen says about countering autocracies is mere political posturing. I urge EU leaders to prioritise the protection of EU citizens before turning their attention to citizens beyond our borders.

My vision for the EU is one where laws are strengthened to ensure the protection of its citizens. Certainly, human rights violations still occur. In the upcoming Multiannual Financial Framework (MFF), the Commission must go beyond symbolic references to EU values. The disbursement of funds must be directly linked to the protection of EU citizens. It is true that the new MFF will adopt a revised structure and funding architecture. However, we cannot continue to focus solely on security and defence on the eastern flank while some member states blatantly circumvent treaties in favour of closer ties with autocracies rather than democracies by also advancing autocratic rules within the Union. I always refer to retain flexibility within the Union to allow sovereign member states the right to choose. However, when I refer to flexibility within the EU, I mean that competencies such as revenue, security and the Common Foreign and Security Policy (CFSP) should remain under the purview of member states. However, the protection of EU citizens must always be a central safeguarded priority for the European Commission.

Surely, the EU must continue advancing its agenda on decarbonisation and sustainability. In addition, it must significantly increase investment in Artificial Intelligence, Quantum Computing, Medical Research, Affordable Healthcare, Affordable Housing, Space Research and Technology and Cybersecurity. Within the new MFF, the EU must identify strategic opportunities to boost competitiveness and set ambitious targets to accelerate key industries before 2030. Moreover, the EU must open its doors to the talented individuals being rejected elsewhere, particularly from across the Atlantic, especially LGBTQ+ individuals. We need researchers, engineers, ICT experts and top scientists to drive forward the European Competitiveness agenda. Our curricula, educational programmes, and even our lifestyles must evolve to achieve a quantum leap in competitiveness. The EU must collaborate with national governments to direct funding towards courses and training programmes aligned with future labour market needs. Without such foresight, the EU risks stagnation. However, I am confident that, with the right conditions, strategic partnerships, and robust consultation, the EU can emerge stronger. This is not the first time the Union has faced difficulty. It has consistently demonstrated resilience and fortitude in the face of economic and political challenges.

To secure a sustainable future, the EU must also focus on building a continent that is attractive to younger generations and skilled individuals seeking to migrate. With an ageing population, the EU urgently needs economic migrants, and it must create the right conditions to attract the best. We must adopt an outward-looking perspective. However, one current concern remains the state of the banking sector. Unless the European Commission maintains close coordination with the European Central Bank, mobilising capital for desperately needed start-ups will prove difficult. Banks must develop a greater risk appetite to support innovation-driven industries.

We all aspire to a stronger, more competitive Europe – one that protects its citizens’ rights, upholds the freedom of assembly and stands firmly against autocratic behaviour. However, we cannot afford additional confrontations outside the Union, at least not in the next four years.