Speeches

Speech by President of the Republic of Lithuania Valdas Adamkus at Interactive Session in Davos: Europe' s Place in the World

We gather here in Davos 2009 in the midst of fast economic and financial changes which create an environment of profound uncertainty that we have not seen for a generation. This makes it ever more challenging to dwell on issues that cut across different spheres - economy, energy, foreign policy, to mention just a few - and different regions of the world.

Crisis is the time when things are put to test. "Crisis" is perhaps the most used word in the debates of these days. But in the best of the Davos traditions, I want to be clear from the outset: this crisis is both a challenge and an opportunity. It is with this in mind that I view the coming changes of the economic and social fabric of Europe, North America and also of China, India or Russia. We are all put to test: who is fit to weather the storm? Who will emerge stronger afterwards and why? Still, the topic which you asked me to introduce is Europe's Place in the World. So to focus the question once more: What kind of Europe will emerge after the current recession and what are the preconditions for stronger, more resilient and self confident Europe?      

My starting point: We can talk about a coherent and strong Union in the world affairs only and in so far as we have integrated and coherent policies among the EU member states. Several elements are crucial in this regard:

first, the single market and energy policy;
second, the euro and the rebuilding of confidence in financial markets and institutions;
third, Europe's openness to the world.

Dear friends and fellow colleagues, we can hardly expect Europe to speak with a single voice in a prompt manner to the external suppliers of oil or natural gas if we do not have an integrated energy market inside the European Union. And by integrated market I mean the genuine integration of all member states without leaving any isolated regions as we still have in the Baltics, creating real competition and a real choice of the supply sources for our consumers. Energy is one but critical example of the area where the single market is still fragmented or simply lacking. Based on the single market ideas we must forge the European energy policy, combining energy efficiency, climate change measures and energy security. To my mind, a common energy policy is of an existential importance to the future of Europe: either we develop such a policy or Europe's future looks very bleak indeed.

The euro has been a great success. I make this point not only from a global, but also from a very local Lithuanian perspective. Two years ago we missed the inflation target by the narrowest of margins. Some people in my country thought it was not fair and were disappointed; some others heaved a sigh of relief, preferring the wait-and-see position. Today the verdict is clear: for Lithuania's small and open economy the euro would serve as a strategic safety net. Today my pressing conclusion is that reform comes at a price, but missing a chance or lowering ambitions exact an even higher toll. I apply this to Lithuania as well as to Europe. 

Or let us take our structural reforms. Reforms geared to boost European competitiveness in the 21st century. In 2000 we embarked on the so-called Lisbon Agenda. Over the years its implementation has been criticized and often quite rightly. I could even hypothesize that some of the current economic difficulties result from the lack of progress in reforming our social security, research and education, or healthcare systems. Maybe the economic recession will push us to do what our irresolute undertakings could not help us achieve?  

As for the economic and monetary union, it remains not an end in itself but a European frame for sound finances and for deepening European interdependence. Thus I am very pleased that the eurozone kept expanding over these past years. I am watching with great interest the financial markets at work. Further steps should be considered concerning the EU/eurozone governance with inclusiveness serving as the basic principle. 

Ladies and Gentlemen, this coming May we are going to celebrate five years of the biggest EU enlargement which symbolized the reunification of Europe. It is evident that the EU enlargement has been a positive sum game for old and new member states and for Europe as a whole. It has benefited all by providing more freedom for trade, work and travel, and by increasing the EU visibility in the world. And despite what the doomsayers have been predicting about institutional difficulties, it did not weaken their ability to act.

But we should not stop there. The enlargement of the EU has also given Europe more responsibility in its neighborhood as well as on the stage of world affairs.
During the last century, we have witnessed a grand spill-over of European values and culture to the neighboring regions. We have always supported that because we believe that democratic, tolerant and open societies bring prosperity and stability to all, and create the ability to have a dialogue.

Openness remains the fundamental precondition for Europe's success, first and foremost openness in our neighborhood policy. Even though most countries of the European Union seem to be preoccupied with their internal economic issues in this environment of uncertainty, we should not forget the countries that are our neighbors linked with us by intensive trade and other relations. We should allow them to enjoy the benefits of economic integration. And here I speak first of all about expanding and deepening our trade relations with Ukraine, Georgia and Moldova as well as increasing the possibility for the citizens of these countries to travel more easily and buying less expensive visas to visit us.

We should also talk about Europe's openness in trade with the rest of the world: we should take a lead in resisting the protectionist temptations which - as history, in particular the policies of the 1930s, clearly demonstrates - are a zero sum game. We have not seen much progress in completing the Doha negotiations of the World Trade Organization, despite the declarations to do so in recent months. Instead, we have seen the return to beggar-thy-neighbor policies which might eventually drive us back from the track of integrated trade relations. Of course, the European Union should not be alone in preserving what we have achieved in world trade affairs. I strongly hope that we can count on the United States and its new administration here.

Let me stress that even at its strongest peak the EU's place in the world would be incomplete and limited without its natural partner - the United States of America.

While facing old and new daunting challenges today, there is a danger that some of us may overlook or even question the importance of transatlantic cooperation. We have to look back in history to really appreciate the greatness of Europe and America working together. Because of this work, Europe was rebuilt, the communist ideology of tyranny and fear was defeated, Central Europe went through very successful reforms and democratization, the culture of international cooperation prospered, and millions of people across the globe started to believe in the future again. These are achievements of historic magnitude.

The world might have changed, but the importance of transatlantic cooperation is as critical as never before. The strategic challenges that arise before us today - the financial crisis, terrorism, energy security, climate change, poverty, difficulties of reformation, etc. - require a greater effort and closer cooperation between Europe and the United States.

I do hope that the new Obama administration will devote enough efforts to reinvigorate its relationship with the EU. However, it is also up to the EU to show more responsibility and do more burden sharing with the US while dealing with global challenges, such as terrorism.
 
Ladies and Gentlemen, I am certain that Europe will remain a model of regional integration. Europe's attraction and power will stem from the successes achieved: the single market, the euro, the European law and institutions. Europe's diversity - its precious DNR feature - will encourage innovation. Democracy and human rights, private initiative and competition, as well as openness to our neighbors and other regions of the world will guide us through these turbulent times. And will prevail.

H.E. Mr. Valdas Adamkus, President of the Republic of Lithuania