Good evening Ladies and Gentlemen,

I would like to start by thanking the ACT Branch of the Australian Institute of International Affairs for giving me the opportunity to share my take on how the EU is approaching this still rather new and challenging year of 2017.

Allow me also to mention that the AIIA (National level) and the EU Delegation are partnering to organise the first ever European Union and Australia Leadership Forum this June in Sydney that will bring together leaders from the business, political, academic, NGO and media sectors to explore how the EU and Australia can best approach the challenges and opportunities of our times.

Tonight's address is entitled:  2017: an important year for the EU – increased responsibilities and challenges in a contested scenario.

I plan to develop my argument in three steps:

- first of all an increased sense of responsibility – to defend the rule-based international order that is coming under increasing pressure; increased responsibility also to promote the interests and the values of EU citizens;

- secondly, the challenges that the EU is facing internationally by mass migration, climate change, regional insecurity to its East and the South; and domestically by populist forces who exploits the slow economic recovery and the terrorist threat;

- thirdly the opportunities that arise for the EU in addressing these challenges, while holding its values and principles.

 

1) Responsibilities in a contested world

We live in times when fundamental norms and principles of international cooperation and engagement are increasingly contested.

 

Be it the principle of territorial integrity (as in the case Ukraine); be it the rules based international order that frames climate action, free trade, migration, non-proliferation, human rights and international organisations – the UN, WTO, International court of Justice – which underpin this system. Be it our sense of community challenged by terrorism.

 

There are an increasing number of actors around the globe, who believe and act as if this rules based order does no longer serve the purpose of its ultimate objective which is to frame the quest for peace and prosperity of the international community.

 

Those who still hold these principles very dear - and the EU and Australia do - have an increased responsibility to stand up, defend and uphold them.

 

The EU believes that the best way to do this is via multilateralism and a liberal global political and economic order remains valid.

 

We will continue to support the importance of promoting Human Rights, peaceful conflict resolution, the benefits of free movement of goods, services and people and the need to preserve the planet.

 

We want to continue engaging with our international partners and allies, based on the understanding that multilateralism has proven to be an effective method to mitigate differences and shape consensus.

 

We will continue to support the institutions created to underpin the global rule based order: the UN, the WTO, the UNFCCC, the International Criminal Court to name just a few.

 

This leads me to elaborate further on the key challenges we are facing – globally and, more specifically, in Europe:

 

Challenges

 

Challenges, these days, are not in short supply.

 

Internationally

 

Migration: We witness an unprecedented number of people on the move internationally (UN estimates around 60 million). Many of those are ready to risk everything, even their life to come to Europe. This has resulted in a true migration-crisis over the past year creating enormous challenges for our European immigration and asylum systems and our weaknesses.

 

Terrorism: Around the world we have seen over the past few years a worrying surge of terrorist activities, particularly fuelled by religious extremism. No country or region seems to be spared.

 

Regional Instability: The illegal annexation of Crimea by Russia and the continuing destabilisation of Eastern Ukraine remains a threat to the security and prosperity of the EU.

 

As is the continuing conflict in Syria and the persisting instability in countries like Libya.

 

Even the tensions in the South China Sea or the risks created by proliferation of weapons of mass destruction in like DPRK represent challenges we all have to face.

 

Domestic challenges;

 

- the underperformance of European economies following the global financial crisis which brought unacceptable rates of unemployment and the migration consequences has fuelled populists forces whose political offer is based on simplistic recipes: national egoism, fears.

 

In the UK, the majority of people were not convinced after the bitterly fought campaign that the UK would be better off inside the EU rather than outside. And Brexit is a serious challenge to the European integration process. Not only will the UK be the first country to ever leave the European Union in its 60 years of history – it has also galvanised the attention of those in other EU member states who don't think the EU is part of the solution – but rather part of the problem.

 

The upcoming elections in the Netherlands in France and in Germany later this year will show whether the challenges for the EU will deepen further this year.

Opportunities

 

With all these serious challenges in front of us, let me turn to the opportunities that the EU is seizing when approaching challenges.

 

 

1) The terrorist attacks have led to an aggressive anti-terrorism strategy with a substantial strengthening of our internal and external security in the European Union. The EU counter-terrorism strategy aims to combat terrorism globally while respecting human rights, the cooperation between our Member States has strongly increased and we have put in place new legislation strengthening external borders, improving transport security improving practical cooperation and information exchange between police and judicial authorities, tackling terrorist financing and depriving terrorists of the means by which they mount attacks and communicate (PNR, ESDA, system, finger printing etc.), in full respect of civil liberties, privacy and protection of human rights.

 

2) An effective Migration policy. We have put in place a common European Coast Guard, launched several maritime missions that have rescued more than 400,000 people.  The arrangements we have put in place with Turkey have helped to return to a more manageable flow of migrants via the so-called Balkan route. We have contributed to the disruption of organised people smuggling syndicates including by working with the Libyan authorities. Again in doing this we have been very clear that the European Union will stand for those who have the right to international protection. 

3) A global foreign and security policy. The EU Global Strategy calls for a stronger Europe to act as a security provider in this contested global scenario, based on innovative principles such as "principled pragmatism" and "strategic autonomy" to make possible for the EU to intervene, engage, in a united, responsible approach in partnership with others, including our like-minded partners, like Australia.

 

Over the past months the focus has been on implementing the Strategy’s security and defence plan which has already produced significant results in equipping the EU to respond more rapidly and decisively to external conflicts, strengthening the EU–NATO strategic partnership and supporting the industrial basis for European defence such as investing in the European Defence supply chain.

 

4) An open trade policy. Trade provides the opportunity for countries, particularly in Europe, to come together and benefit. Recently the EU's trade commissioner, Cecilia Maelstrom, declared "trade is worth fighting for". This is why we are making good progress in talks with Japan, and with the Mercosur countries in South America, restarting last year after a long pause. This week the European Parliament is expected to vote through the Canadian-EU free trade deal.

And of course we plan to open formal FTA negotiations with Australia still this year. This is how we embrace the opportunities for further trade liberalisation in order to deliver greater economic benefits to our citizens.

 

5) A sustained, inclusive and resilient economic recovery.

I will not detail the enormous efforts that the EU and its MS have achieved over the past few years through a combination of structural reforms, monetary policy and EU wide measures. Only yesterday, the European Commission presented the economic winter forecasts: for the first time in nearly a decade all the 28 MS are expected to grow throughout the entire forecasting period (2016 – EZ 2017 +1,6%  2018 + 1,8% ); real GDP has grown in EZ for 15 consecutive quarters, employment is growing, unemployment falling (8,5% in 2016; 8,1% 2017; 7,8% in 2018), private consumption is leading. Inflation is picking up. All parameters are positive. However the outlook is surrounded by higher than usual uncertainty.  

 

Conclusions:

 

It is clear that a sense of complacency on the future of the EU is out of place, but pessimism, too.

 

History is on our side. We have delivered the longest, safest secure and more prosperous period of peace in Europe. I agree that looking back is not enough, but amnesia does not help when looking forward.

 

It is also clear that in this global contested scenario, where the EU shoulders have increased responsibilities and challenges, a 'business as usual approach' is not enough.

 

The EU and its Member States need courage and a clear vision for their common future as they realise that no single EU country can face and solve the many threats in front of us.

 

This is how the EU approaches the challenges and opportunities of 2017 - the year in which the EU will celebrate the 60^th anniversary of the Treaty of Rome which created the European Economic Community back in the 1950s.

 

It is more than just a birthday to celebrate. It is a stepping stone for the future, an occasion to re-define our vision of a unified European continent and the future of the European Union – even after the UK has left.

 

We have the vision, we have the capacity, we have the resources, and we have the people to give a common response to global challenges.

 

As president Tusk recently said at the European Council in Malta - Europe is strongest when united: United we stand, divided we fall.