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The Schuman Report on the State of the Union is a work of reference which everyone now looks forward to reading every year. For decision makers and observers of European policy it is a source of original thought and ideas, underpinned by a strong requirement for quality. It is a tool for those who are looking for reliable sources in terms of European statistics and macro-economic data. Some eminent people have chosen to contribute their ideas also. In 2013, Josef Ackermann, former CEO of Deutsche Bank, Chairman of the Board of Directors of Zurich Insurance Group , offers his analysis of the banking Union, Lord Dykes, Foreign Affairs Spokesperson for the LibDems in the House of Lords, provides readers with his view of the future for the UK in the European Union and Alain Lamassoure, MEP, Chairman of the Budget Committee in the European Parliament, suggests a budgetary federation.The very best specialists help to throw light on the major trends ongoing in the economy and also in international and European politics. This book includes around 35 maps that are often unique, in explanation of the major issues the Union is facing. It also includes a summary of political Europe which analyses the 2012 electoral year (among France, Greece, The Netherlands, Romania), looks into the political and economic representation of women in Europe and draws up an overview of normative output in the Union in 2012. A unique series of commented statistics and maps covers all of the main topical issues (growth, buying power, economy, demography, immigration, energy, environment) and enables the Schuman Report 2013 to present a full view of the European Union and its policies.

Inhaltsverzeichnis

Frontmatter

The European Union and the economic crisis: between defending national interests and progress towards integration

Europe, towards recovery?

Abstract
We have lost count of the pessimistic forecasts about the European Union, made by the most eminent experts over the last four years! Renowned economists, some Nobel Prize winners, financial analysts of all kinds — how many of them were clearly mistaken in announcing the end of the euro, the default and exit of Greece and the end of the European Union. They have all been belied by the facts.
Jean-Dominique Giuliani

Political Union: from slogan to reality

Abstract
With the crisis vital debate about the future of European integration has arisen. However in spite of growing citizen mistrust with regard to the European institutions, the reforms that are underway carefully avoid fundamental political issues: how can we simplify the European decision making process so that it is more transparent and readily understandable for the citizens? How can we strengthen the democratic legitimacy of the decisions taken, which for the time being are mainly the result of a technocratic, diplomatic process?
Thierry Chopin

Franco-German co-operation: productive tension

Abstract
Since the start of the Eurozone crisis in 2010, the German and French governments have been in constant conflict when it has come to finding a political response. There have been many bones of contention: financial support for Greece, pooling of debt, the role of the ECB, the introduction of economic governance, criticism of the German export model, sanctions against lax countries, the fiscal pact and the introduction of a golden rule, to name just some. These disputes were amplified by the media and public debate, which both added their sometimes excessive share of polemic1. However, in the face of an unprecedented crisis, both governments have succeeded in overcoming their disagreements, reaching a necessary consensus. Does the usefulness of Franco-German cooperation lie in the intelligent management of these differences, which alone will lead to a convergence in their national positions and European progress?
Henrik Uterwedde

Europe adrift: Illusions and Realities of the European Energy Policy

Abstract
On 4th February 2011, the European Council, the solemn authority of the European Union, set a common goal on the proposal of the European Commissioner for Energy, Günther Oettinger: the completion of a common energy market by 2014. However in reality this seems to be a profound delusion: the Europeans are further than ever before from a true European market.
Joachim Bitterlich

Several Europes but which ones? A proposal to rationalise European integration

Abstract
2012 witnessed the return of ‘variable geometry’ to the centre of the debate about the future of European integration.
Jean-François Jamet

Britain in Europe: neither in nor out

Abstract
Over the past twenty years, a dangerous experiment has been carried out in the United Kingdom. There has been a futile attempt to combine formal British membership of the European Union with detachment from its main policies, such as the single currency and the Schengen area. This has involved a grudging political acceptance by the British political classes of the rational need for Britain to be part of the Union, offset by ever deeper popular hostility to the Union and everything it stands for. The motives which led to this strange combination of attitudes were various. Lazy and cowardly politicians were able to emphasise, as it served their case, the pro-European or the anti-European side of the argument in their rhetoric and party programmes. A certain tenuous unity within the main political parties could apparently be maintained by this systematic split-personality approach. Some at least of those who acquiesced in it privately believed that when the ambiguities inherent in Britain’s tortured relationship with the European Union were finally resolved, it would be to their advantage.
Hugh Dykes

Towards true European economic union

Eurozone: light at the end of the tunnel?

Abstract
Three years after the launch of battle against the euro due to the downgrading of Greece by a ratings agency, the question remains: is the euro crisis now being settled? Two options are still open. We might think that it is the case when we read the Treaty on Stability, Coordination and Governance (TSCG), the new treaty which completes the Stability and Growth Pact and adopts a public finance management rule focused on the mid-term via the rule of zero structural deficit; we might also consider that since the European Stability Mechanism (ESM) enables States in difficulty to refinance to a total of 1000 billion € without having to use the markets, this should guarantee a certain easing on the bonds markets; lastly we might think this in the light of the action taken by the European Central Bank whose balance sheet has continued to expand rising to more than 3000 billion € at the end of 2012, ie 30% of the zone’s GDP, higher than the level of the American Federal Reserve (the ECB’s balance sheet/GDP ratio lay at 15% in 2008).
Jean-Marc Daniel

For a credible growth strategy for the eurozone: the obligation to produce results

Abstract
Any growth strategy for the eurozone is doomed to failure if there is no improvement in the functioning of the Economic and Monetary Union (EMU). The incomplete nature of the euro’s foundations became glaringly obvious during the most recent economic and fi nancial crisis. However, thanks to the theory of optimal monetary zones developed by R Mundell in 1961 we know how to make the eurozone function satisfactorily. It comprises the development of alternative adjustment mechanisms to the exchange rate, such as the increased mobility of production factors. Then governments and the European authorities will be able to concentrate on freeing the traditional engines of growth, i.e. investment, innovation and training to improve the growth trend. But the real challenge lies in the definition of an integrated cooperative economic policy which prevents the market share gains of some being systematically made at the expense of those made by others as is the case at present. The rebalancing of the Member countries’ current accounts, as it is being undertaken at present, cannot be considered a strategy for growth.
Mathilde Lemoine

EU Banking Union: Sound in theory, difficult in practice

Abstract
In June 2012, the EU heads of state and government decided to pursue a so-called Banking Union as part of the effort to strengthen the cohesion of the European Union and to stabilise the eurozone. Banking Union is now part of the four frameworks — an integrated financial framework, an integrated budgetary framework, an integrated economic policy framework, and a framework for better democratic legitimacy and accountability — proposed by the President of the European Council, Herman van Rompuy, also in June, as the necessary elements for a genuine economic and monetary union.
Josef Ackermann

Towards a fiscal federation?

Abstract
At last! The black hole in European debate that has been ongoing for the last two decades, the problem of the common budget, is back in the limelight and on the agenda of the European Council. The debt crisis has contributed to this immensely.
Alain Lamassoure

Europe’s Sustainable Competitiveness Challenge

Abstract
Despite Europe’s attention and initiatives to tackle the sovereign debt crisis, its low growth prospects and high unemployment levels, three ‘super trends’ that threaten the prosperity of future generations remain. The policy response should, however, primarily be found at Member State level. To tackle the impact of globalisation, population ageing and increasing costs and scarcity of primary resources, EU Member States, in close coordination with the European Institutions, should face their ‘sustainable competitiveness challenge’.
Stefaan De Corte

Europe and the Social Crisis: in support of a new European Social Contract

Abstract
Some analysts wonder whether “social Europe” or the “European social model” really exist, using the diversity of situation amongst the various countries in Europe as a base to their argument. Without denying that these differences exist they cannot bring into question the historic and political validity of the concept. The comparison of social and labour relations, as well as legal systems which guarantee rights in most European countries, with those in force in the rest of the world, notably in the emerging countries, is the greatest proof of this.
Ignacio Fernández Toxo, Javier Doz

Europe in the world: between values and interests

European strategic interests: choice or necessity?

Abstract
The serious problems affecting Europe at present are not the result of a simple economic and financial crisis; they come from geo-economic change and a major world geopolitical transition. The collective management of present weaknesses (sovereign and private debt, public deficits and low growth) will lead to results but it is reducing European action and discourse down to the economic dimension alone. It is a strategy of necessity.
Michel Foucher

Europe and Globalisation: the dangers and the assets

Abstract
The euro crisis has been so strong that Europeans’ have tended even more toward their trad itional occupation of navel- gazing. But scrutiny of the Greek debt and the intricacies of the agreements made on banking supervision may indeed lead us to forget the main context i.e. globalisation to which the Union is trying to adjust. Of course globalisation signifi cantly weakens what has been achieved, the comparative assets and the very model of European integration; this adds to the economic crisis a series of crises and challenges which are vital for the future of Europe. But globalization also brings to the fore the consid erable assets held by the Union in the international arena, which political leaders have to acknowledge and make use of.
Nicole Gnesotto

Second Chance for Barack Obama: A Sarajevo Moment

Abstract
Barack’s Obama re-election in November 2012 was convincing. Yet, the ambivalence shown by many of his most loyal supporters — with less enthusiastic crowds, a smaller margin of victory, and a less serene tone than four years ago — points to the disappointment of a large part of American public opinion. Still, Obama learned a great deal over the past four years. And what he learned augurs well for his ability to assert his place in history with the audacity which he had initially claimed.
Simon Serfaty

Why the transatlantic economy still matters

Abstract
The post-crisis world of today remains challenging for the United States and Europe. Both parties are struggling to heal and recovery from the fi nancial crisis of 2008 that has left deep scars on both sides of the Atlantic. Europe’s sovereign debt crisis has crippled and divided the continent, and threatens to condemn Europe to a “lost decade” of low or stagnant growth. The outlook in the United States is not as dire although the aftershocks from the “Made in America” fi nancial crisis have steered the U.S. economy into a slowgrowth rut. The current U.S. economic recovery is one of the weakest on record.
Joseph Quinlan

Europe and the Arab Revolution: a missed opportunity?

Abstract
The Union for the Mediterranean (UPM) was, on the one hand, the result of a compromise between the desire to preserve the achievements of the Euro-Mediterranean process launched in Barcelona in 1995 and a three-fold calculation on the part of Nicolas Sarkozy on the other. For the French President this meant a project-based depoliticization of the Euro- Mediterranean process, thereby uncoupling the Euro-Israeli relationship from the Israeli-Arab Peace Process and offsetting Turkey, whose European integration has been delayed indefinitely.
Jean-Pierre Filiu

Interview

IV. Interview

Without Abstract
José-Manuel Barroso

Summary of political and legal Europe

2012, a Swing Year?

Abstract
Six countries in the European Union renewed their parliament in 2012, four of which did so early, notably due to domestic political crisis. The left — and it is a first in six years — was the winner in these general elections. Indeed three Member States swung from right to left: Slovakia, France and Lithuania; in Romania the left/right coalition that has gov erned the country since May 2012 won the ballot. In Romania, the left/right coalition — in power since May 2012 — won the election on December 9th. In the Netherlands, the Liberals formed a coalition government with the Labour Party (PvdA). Lastly, in Greece, the government formed by the right (ND which won the elections on June 17th), the PASOK chose four of its ministers even though it decided not to take directly in government.
Corinne Deloy

Towards more women in Europe?

Abstract
2012 was not an extraordinary year for women in Europe. No women were elected as Head of State or of government, no women were appointed at the European Central Bank; a multitude of obstacles have been erected to undermine the European Commission’s draft directive1 which aimed to achieve a 40% quota of women on company boards — inequality between men and women has continued to grow2: there has been nothing to encourage our optimism.
Pascale Joannin

The growing influence of topical issues in legislative activity: limited political, but innovative and responsive, initiative

Abstract
It is now a well established fact that the immediacy of information and close connections between one point of the planet and another are forcing governments to act instantly. The European Union does not escape this rule. As a Union of law its response leads to legislative activity that suffers the tight constraint of topical issues. For example before the “Six Pack” had even entered into force on 13th December 2011,1 in a bid to settle the euro crisis, the European Union and its Member States were organising the introduction of a new Treaty to restore the States’ budgetary credibility.
Jean-Baptiste Laignelot, Nicolas Delmas

Europe and the Challenge of “Peripheral Nationalism”

Abstract
At a time when the European Union is fighting to preserve its cohesion and prevent the exit of the eurozone by one of its Member States, another challenge is threatening its integrity: the rise of “peripheral nationalism” in several European regions, which are defending a specific, discrete identity of the Nation-State to which they belong and as a consequence their right to self-determination. The recent electoral successes and declarations made by several European regionalist political parties bear witness to this: whilst the Neo-Flemish Alliance (N-VA) achieved scores that varied between 20 to 30% in the local elections in Flanders on 4th October 2012, pushed forward by its leader, Bart de Wever, as the Mayor of Anvers, Flanders’ leading town; the Basque Nationalist Party (PNV) won the elections on 21st October in the parliament of the Basque Autonomous Community. In Catalonia, Artur Mas, the chair of the Generalitat and of the centre-right Catalan Nationalist Party — Convergencia i Unio (CiU) announced in September last to “his people” that he wanted to convene a referendum to give Catalonia “a State in its own right”1. Although the score achieved in the early elections on 25th November 2012 were disappointing (CiU dropped from having 62 to 50 regional seats), other more radical leftwing and far left parties, campaigning for independence (Esquerra Republicana de Catalunya and Candidatura d’Unitat Popular) improved their results. In Scotland the British Prime Minister, David Cameron confirmed one of the campaign promises made by the Scottish National Party (SNP) giving the green-light to the organisation of a referendum on Scotland’s independence in the autumn of 2014.
Magali Balent

The Europeans, the Crisis and the World

Abstract
The economic and financial crisis, which has been in full swing in Europe for the last four years has established in most of these countries expectations that are marked by a distinct note of pessimism. In the spring Eurobarometer 20121, 60% of those interviewed believed that in terms of the impact of the crisis on the employment market “the worst is yet to come” (cf. map 1). Of course pessimism is at its highest in the countries most affected by the crisis: Portugal (78%), Greece (77%), Spain (72%), Italy (62%) but the opinions of the most prosperous countries such as Finland, Luxembourg and even the UK are also marked by a high rate of pessimism. At 59%, France still lies within the European average. However seven countries, including five in Central and Eastern Europe avoid these morose forecasts to some extent: Slovakia (49%), Latvia (49%), Denmark (45%), Austria (44%), Estonia (44%), Romania (42%) and Bulgaria (40%). In these more “optimistic” countries, the unemployment rate is relatively low (Austria and Denmark) or also high (Latvia, Bulgaria). Economic and social indicators of well-being are not the only means to illustrate what the Europeans think of the crisis. Of course the attitude of the most impoverished social categories is marked by pessimism: 66% of the unemployed, 61% of workers, 65% of those who left school at 15 or under believe that “the worst is yet to come” but this also applies to 51% of students and 58% of executives. In 2012, pessimism about the effects of the crisis seems to be “the best shared thing in the world”. In all age categories and in all social classes pessimism rules. It peaks (71%) amongst Europeans who believe that “globalisation is not an opportunity”.
Pascal Perrineau

The European Union in figures

VI. The European Union in figures

Without Abstract
Alain Fabre, Gerald Stang
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