Bettina Omizzolo*

Is the European dream alive? In the course of two days, with an abounding program, political leaders, European Union (EU) representatives, and students debated this question at the headquarters of Harvard Kennedy School of Government, in Cambridge, Massachusetts.

The current and past geopolitical crises of the last few years – that have echoed around the world and more intensely in the heads of EU leaders – gave the tone for five panels and four keynote speeches mainly themed as follows: (i) competitiveness in and of the EU; (ii) Energy transition and its implications in the EU; and (iii) EU’s geo-political standing. This paper intends to share a few takeaways under each of these themes.

(i) Competitiveness in and of the EU

A free internal market is at the core of the EU, and to comprehend its functioning, Elisa Ferreira, European Commissioner for Cohesion and Reform, stressed why respecting diversity is an inherent feature of the EU market.

Currently with twenty seven member states, the EU is forged of language, cultural, and economic diversity, posing unique challenges at regional levels that echo across the continent – and Brussels has its eyes and ears wide open. The Commissioner stressed that in order to ensure growth and prosperity across the block, this diversity must be respected. In practice, it means having a mechanism that provides equal opportunities and balanced growth across the continent, as economic growth and development tend to be concentrated at the most developed areas.

This objective is engraved in the EU founding agreements and, as quoted from Jacques Delors, former president of the European Commission from 1985 to 1995, the European dream is not only about economic prosperity but also social justice and inclusion. With a social market economy, the EU relies on its Cohesion Policy to rebalance economic opportunities while also safeguarding basic democratic rights, which can be illustrated by public policies for greening and digital transformation for sustainable innovation and growth.

Another key tool is Shared Management, which means adequating EU social funds and policies to each member state’s needs and realities in terms of investments. When speaking about less developed areas, EU investments will normally focus on infrastructure at first and with time, on more value added projects, such as innovation and research.

Respect for diversity within the EU (and beyond its borders) also underlined the keynote speech of Paolo Gentiloni, current European Commissioner for Economy. Amongst his predictions for regaining economic growth in Europe after the Covid-19 pandemic is the strengthening of the single market and its expansion. In his words, peace and enlargement are at the heart of the EU and the difficulties herewith are not a reason not to enlarge the block. In this sense, new member states will require investment in order to comply with ambitious EU common goals, such as fiscal capacity, defense, and energy investments. This may be done by limiting state aid and redirecting public investment to the EU’s priorities, as suggested by Enrico Letta, former Prime Minister of Italy and keynote speaker at the conference.

(ii) Energy transition and its implications in the EU

Following the EU Green Deal, as expected, the energy transition continues to provide fruitful discussions within and beyond Europe. While lowering carbon emissions does not prevent economic growth, as stressed by Commissioner Gentiloni, it is evident that the EU’s climate goals serve as a main topic of debate and divergence for the 2024 elections for the European Parliament, as shown by farmers led protests across Europe.

Other challenges arising out of the Green Deal are the effects of trade policies such as the Carbon Border Adjustment Mechanism, a carbon tariff that will be imposed on imported carbon intensive products, such as steel, cement and some electricity. The tariff is designed to be compatible with the World Trade Organization rules, however, its effects for the private sector and in terms of competitiveness within the EU are rather uncertain.

At the same time the energy transition is certainly attracting more and more public and private investments, including at EU level – at least in Romania and Spain, as stated by Sebastian Burduja, Minister of Energy of Romania, and Joan Groizard, CEO of the Spanish Energy Agency. While there are lots of investments in renewable sources, its daily usage at societal level seems to remain a challenge. It is indisputable that, for some regions, given supply and cost conditions, carbon fuel remains the easiest and simpler solution for the common citizen.

A key concern for Romania is its dependency on carbon based energy, particularly on Russian gas. While seeking for alternative sources, Romania has an extensive supply of natural gas, however, financing from the EU in carbon led projects is unavailable and the private sector has a bigger appetite for renewables projects. As stressed by the Romanian Minister of Energy, geo-politics and energy projects go hand-in-hand.

(iii) EU’s geo-political standing

Amongst all challenges faced by the EU, war in Ukraine is often quoted as the most unprecedented one, raising evermore concerns and responses by the block. At the same time, Ukraine’s candidacy to become a member state is a symbol of how well alive the European dream is.

Strengthening the EU’s defense capacity has become a fundamental goal for the EU ever since Russia’s invasion in Ukraine. As put by Commissioner Gentiloni, ensuring the EU values of peace, prosperity, and security, requires the EU itself to be able to guarantee such peace and its freedom of choice, regardless of foreign aid from the United States and other allies. Establishing and preserving peace remains a raison d’être of the EU, together with enlargement of the Union, well illustrated by Ukraine’s EU candidacy.

This process comes, however, at an immeasurable cost for human lives and a fundamental reshaping of the integration process for member states in light of the war state in Ukraine. Before becoming an EU member, candidates undergo several regulatory reforms in order to comply with the EU framework. Daniela Schwarzer, leading expert on European and international affairs, remarked that the current EU mechanisms for accession of potential member states were not designed to consider times of war. However, in the midst of the conflict, a greater political commitment has emerged, contributing to a somewhat more efficient process in Ukraine.

In the aftermath of Russia’s invasion of Ukraine, transatlantic relations have also taken a central role in the geopolitical arena and, as put by Arancha González, former Minister of Foreign Affairs of Spain, the unified approach from the EU and NATO serve as an antidote to Russian acts.

Closing remarks

The EU is born from integration and with it has taken on many challenges in order to achieve its values and continue enlarging the free market across the continent. It is also from its own integrated and unified approach that it has been able to face and overcome major crises in the last couple of years. As the paramount example of regional integration, the European dream is not only alive, but essential for the current and upcoming threats to peace and security, democratic values, green and digital transitions, amongst other essential subjects for policy-makers.

*Bettina Omizzolo

Advogada OAB/SC

Mestre em Direito e Relações Internacionais PPGD/UFSC

LL.M. in International Dispute Settlement (MIDS)