Part 3 : How US Economic Policies can Affect EU Growth and Vice Versa

This article is the third part of the series “European Growth and its Importance to US Prosperity.” For introductory remarks and a brief summary of the report, please visit:  The report referred to throughout the analysis regards the Euro Initiatives Global Business & Economic Program publishing “ European Economic Growth and its Importance to American Prosperity”.

Panelists: Gordon Bajnai (Former Prime Minister of Hungary, Group Chief Operating Officer Meridian) Jose Manuel Barroso (Former European Commission President, Co-Chair Euro-growth Initiative) Paula Dobriansky (Former Under Secretary of State for Global Affairs) Raymond W. McDaniel JR (Chief Executive Officer – Moody’s Corporation)

Jose Manuel Barosso opinionates that trade is as valuable as any other investment. The speaker believes that there is a need to conclude a free trade agreement and hopes that although TTIP needs to be revised, it will be part of the talks. The EU is very keen on working with the US. He endorses that both EU and US need each other equally. The EU needs a US that honors its commitments, which respects the EU as an entity and that is willing to trade. He thinks that it would be a pity to abandon it altogether. He thinks that President Trump is about promoting growth. Therefore it makes sense to have a trade treaty with Europe which reduces tariffs. There is resistance to the digital divide not only in Brussels but private capitals. Individuals believe that being pessimistic denotes some degree of intelligence.

Further, the speaker thinks that the biggest problem in Europe is France because the state is the most important political country of the Union. With Britain leaving, France is the only country that geographically both North and South. Although Germany is better economically, France is stronger politically. Without France, nothing can happen. Germany would go further into integration if the state trusted France. Barosso believes there is a lack of understanding between France and Germany. When France trust itself, the atmosphere in Europe will change dramatically. The speaker sustains that there is a political ecology in France that affects the other member states. Things can go very wrong if they have a nationalist president in France. In that case, there will be an existential threat to Europe, and he advises that we should prepare for the worse. There are possibilities of working together. The speaker concludes that the most significant risks today are political and geopolitical.

Gordon Bajnai thinks that as a consequence of the great financial crisis the fundamental pillars of the validity of NATO and the entire corporation have been put to question. It has had a substantial impact on the European public opinion and the European decision making.  The European Party in NATO has not been doing its fair share. Bajnai believes NATO is in need of reform. The original assumption that Europe and NATO need each other is stronger now than 60 years ago. The effects of globalization are that both EU and US are losing their global market share, and other emerging forces do not share the same fundamental values. Because the core pillars are questioned, the US and EU should stand strong in common defense, as there is a need to reinforce these ideas. There is a lot to do on both sides of the Atlantic. Europe needs to find its answer for this European question. He thinks it would be good to rename TTIP. Political economy is back with a vengeance. The Euro exists beyond the mere economic factors as it is a political will.

Raymond W. Mcdaniel argues that first companies are not going to the bond market, that there are the same people that were borrowing before. The West does not see new businesses form or capital expenditure which is the greatest, healthiest form of borrowing. It has been dormant in the US and Europe. There is a need to alleviate the exemplified markets.

Synthesis by: Patricia Besciu  – all opinions are those of panelists – no personal ideas included

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