A responsible Europe again

Denmark’s presidency of the European Union provides a historic chance to return responsibility and realistic optimism to Europe. After the indecision of recent years, we must create sustainable growth.

By Carl Aage Dahl, Director of the Danish Agriculture and Food Council.

The New Year was a decisive deadline for Denmark’s Prime Minister Helle Thorning-Schmidt. Not only is she to hold her first New Year’s speech to the nation to give the direction of her government, but she is also to sit at the head of the European Council table. It will not be an easy task. First of all her chairmanship will be a working chairmanship without a final agreement in sight – unlike Anders Fogh Rasmussen, when as prime minister in 2002 he led the historic eastern expansion. Secondly because the euro, weakened financial markets and burgeoning national debt in the southern European countries will be overriding themes.

Nonetheless, Denmark’s prime minster does not need to feel dizzy after the New Year festivities. The Danish presidency still has its historic chance to have an impact on European development – and to set something sorely needed - a new agenda with alternative values and new focus points.

The philosopher Leo Strauss once said that the big problem with society’s elite is that its thought processes are always distorted in an optimistic direction. Too much progress optimism can lead to political inactivity or a lack of recognition of the seriousness of the situation - a belief that problems will probably solve themselves.

Although it may seem paradoxical to speak of too much optimism at a time of debt crises and the threat of recession, Strauss may have been right. Because when the European economy is threatened by everything from creditworthiness downgrades to the collapse of the euro, it may be that European decision-makers are a little too optimistic. Perhaps so much so that their vision is impaired, and thus their ability to act responsibly. Unwise optimism of the type that overshadows the correct decisions. The type of optimism that has let the belief in the ability of financial markets and the robustness of bonds result in inappropriate economic policy.

The inappropriate optimism that has led to indecision and semi-solutions. Market confidence in European bonds was not magically restored by the stop-gap solutions that came from the summits of 2011. When decision-makers do not dare to address the core issues, consumer confidence in the economy dissipates, companies watch as their order books get thinner and EU member countries feel the threat of recession around the next corner. No! The common good has not been served by the European elite.
The answer to the European crisis is to encourage sensible optimism. This means creating visions on behalf of the European Union and the world. It requires political courage and drive to realise the visions. And it requires daring to take unpopular decisions. That is why the Danish presidency is so important. Because it is Denmark’s chance to be part of establishing a new state of responsibility in Europe.

In 2009 company executives were often heard citing the economist Poul Romers saying that ‘a crisis is a terrible thing to waste’. The obvious reading of that quote is that there is now the possibility of building something new to take over from the old. But it seems that Europe has wasted the crisis of the past two years. Wasted a golden opportunity to build up something new and set a new agenda. That is why now is the time for the Danish government to rise to the occasion. The crisis must be used to create a more responsible and competitive Europe.

Europe’s most important challenge is not debt. It is readjustment to a sustainable growth economy. And in this, politicians must shoulder responsibility for the long-term perspective and not short-term solutions. That is why it is gratifying that the Danish government is calling for focus on climate, energy, the environment and foodstuffs in its working programme, and to re-engender growth in Europe. The Danish Agriculture and Food Council, which is the trade organisation for agriculture, foodstuffs and the agro-industry, lends its full support to this programme. The EU’s budget must be used sensibly, including providing more funds for research and innovation. It is only through more research in green and product developing technologies that we will be able to solve the environmental and climate challenges.

The Single Market also needs a shot in the arm. Denmark must work to achieve the uniform implementation and enforcement of EU rules. There is a need for a showdown with the creeping erosion of the Single Market. In recent years we have seen how member countries have become more protectionist. Many member countries simply protect their own companies from competition and spoil them with subsidies. This is not acceptable if the Single Market, which is the foundation of the EU, is to continue to develop. Settling these issues should be at the top of the government’s to-do list.

There is also the need for Denmark to take pole position in developing sustainable energy. As a society, we must produce more with less. As a result it is vital that the European Union, with Denmark at its head, ensures the best possible progress in negotiations on the Energy Efficiency Directive. Similarly Europe must focus on its special skills in the EU Energy Policy to 2050. Here, biomass and biofuel are obvious focus areas. Denmark is far ahead in using residual agricultural products in energy production. This is something we must exploit and develop.

Finally, new ways of thinking are necessary in the Common Agricultural Policy, which – although its share is being reduced – is still 40 per cent of the EU’s overall budget. In its agricultural reform, the European Commission is suggesting, among other things, several new green incentives. The idea that farmers should produce more green services to society for the funds they receive in agricultural subsidy is a good and logical one that I fully support. But there is no logic in the common agricultural policy, rather than being a growth policy, being reduced to an extended form of social policy used to support ineffective and resource wasting agriculture. Europe, and the rest of the world for that matter, needs growth, increased employment, resource efficiency, innovation and more sustainable intensive production that can help to feed a rapidly growing world population. That is something we are working towards at the Danish Agriculture and Food Council, and we are gratified that the government agrees with us.

Overall, we believe that so far, the Danish government’s priorities for the EU presidency display responsibility and realistic optimism. Now it is important that the good intentions are realised, and we look forward to the government’s final working plan for its presidency. A programme that hopefully mirrors the sentiments hitherto. The agriculture and food industry is ready to shoulder its share of the burden. The sector has various solutions to the major challenges of society: How to produce renewable energy and feed an increasing and richer population without ruthlessly exploiting nature. We are more than willing to contribute to creating responsible growth – for the benefit of all of Europe.

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