Keynote by Commissioner Hoekstra at Maastricht University: roadmap to revive Europe

Keynote by Commissioner Hoekstra at Maastricht University

Good morning everyone,

Ladies and gentlemen,

It's truly good to be here today and a great honour to be here today at Maastricht University.

As a Dutch native, I can attest that Maastricht gladly sees itself as the least Dutch of the Dutch cities.

It's very proud to be the most European one.

That makes Maastricht university the True European academia.

That is of course noticed in Brussels. Every year, we welcome a larger generation of Maastricht alumni as new work colleagues at the EU.

And that benefits this city with its unique place in the history of the European Union.

In December 1991, Maastricht had its golden European moment.

European leaders then assembled here and negotiated the Treaty that gave birth to our European Union.

In their slipstream came hundreds of advisers, security agents, journalists and TV crews. Literally from all over Europe.

For one whole week, Maastricht and surroundings were the hosts, and more or less you could say the Hotel of Europe.

That Hotel of Europe offered a dream place where different European nations, in all their diversity, came together in one house to master common challenges.

Yet of course those moments truly lie behind us.

The Europe that Maastricht helped to build, does need serious renewal.

And today, I will propose some building blocks for that renewal.

Because I cannot help to think of that other Grand Hotel Europa, that was once evoked in the novel by Ilja Leonard Pfeiffer. Some of you might have read it.

This great European novel has everything you expect. History and humour, love and sex. In short you could say: it's full of life itself.

But honestly it is also deeply disturbing. Because Pfeiffer's Grand Hotel Europa isn't a cosy getaway.

It's a pretty dark building full of decay, where Europe turns into basically one big open-air museum.

Proud of its history, certainly, but also profoundly irrelevant as a force in the world.

And now I can almost hear your thinking: now that's depressing.

It must be wild exaggeration. Europe cannot be that relic of the past.

It is exaggeration- good fiction often is.

Just look around and see what a truly amazing place Europe is.

Our continent is home to the happiest countries in the world. The most liveable cities in the world.

We have the smallest divide between the rich and the poor.

We live two to three years longer than people in comparable places like the US.

We've enjoyed decades of peace, stability and safety.

We do remain a global bulwark of democracy and of human rights.

You could actually say that European cooperation is in many ways the triumph of hope over insecurity.

Clear and Present Danger

So, we are not a museum. But I do believe that we have a major problem.

To paraphrase Tom Clancy: Europe is in “clear and present danger.”

The five-star continent that Maastricht helped to build, is under attack.

We face incoming fire coming from everywhere. It flares up every single day. And burns with ever stronger force than it did before.

Our security and democracy are trialled and tested on a daily basis- and it happens online and it happens offline

Our economy is often outpaced by others.

Migration is something we not nearly control.

If that isn't enough, we must brace ourselves for ever more impactful climate change.

AI will disrupt in ways that we cannot yet fully comprehend.

And if not careful, Europe may actually miss this boat the boat of actually shaping change.

On top of that, Europe is an ageing, relatively small continent, with less than half a billion people and very few natural resources.

Such challenges may sound abstract, far-away and potentially in the box: “well that will pass.”

But it's not the case. We do need to act.

But I do have one sobering reminder.

Europe's long game for success

Ladies and gentlemen,

Yet, decay is never a given.

Just look at the last five years. Europe and its 27 Member States defied gravity.

Together we re-emerged from the Covid crisis. Overcame an energy crisis.

And we held together our security on a war-torn continent.

We kept our focus on democracy, on human rights and on rule-of-law. So, it can be done.

But if you are facing an existential moment, you cannot celebrate past success.

You must simply double your efforts- and then do more.

Ladies and gentlemen,

Other players on the global stage are playing the long game.

They don't estimate where they could be next year. They know where they want to be in decades from now.

Every day, their actions steer towards that goal.

And now, Europe must enter that same game.

We must articulate where we want to be in 10, 20 years. In 5 critically important domains: geopolitics, climate, the economy, migration and AI.

And we need integrated action: align defences between the Union and its Member States.

And align our external and internal European policies to basically serve our interest.

Geopolitical Europe

Europe's first priority is to play the geopolitical long game.

War is back on our continent.

And I will not sugarcoat the situation.

This war is dangerous at many levels.

Clearly for Ukraine itself, it is a fight for its freedom and right to self-determination.

But it doesn't stop with that. This brutal war actually threatens security across our continent.

If Ukraine fails, Kremlin autocracy marches into Europe. And the target to conquer is our democracy. That is what is at stake.

More parts of Europe, starting with the Baltics, will enter the danger-zone.

So, I'm not saying that we stand at the brink of World War III. But we are closer to war than any point since the early eighties.

And third- what Europe does or doesn't do, will echo into the future.

In this world of 8-second TikTok videos, a two-year war is, or might seem, very long.

Our decisions now will determine our chance at peace for decades to come.

The world is watching.

If we surrender, if we give in to Putin, we dispatch a deeply troubling message to basically the dictators from around the world.

That if you wait long enough, the free world will eventually give in and give up. That you can sit us out.

So, our cause for action is clear.

First, we must invest into our defence systems.

This European Commission established first European defence industry funds, but its firepower isn't nearly enough.

NATO's target to spend 2% of national budgets on the military should be our floor rather than our ceiling.

We must combine this with task specialisation and interoperability with NATO partners, and a strongly enhanced European defence industry.

Because that actually will define our agility in the case of war.

Secondly, we must play the long game in financing Ukraine's war capabilities.

Let's just assume for a second, let us assume that the war against Ukraine continues to cost tens of billion euros a year.

And let's assume the war that is facing our Ukrainian friends will last at least until 2030. Is that a lot of time and is that a lot of money? Of course, but it's also cheap.

Don't be fooled by disinformation that Europe cannot afford this.

Because as a percentage of our national budgets, it is actually very small. And the same is True if you take this as the price of freedom, credibility and stability. It is a bargain.

And as much as I cherish the cooperation, friendship and partnership of our American allies, we cannot bet the stability of our continent on the ability of one speaker of US Congress to secure a majority for funding Ukraine. So, we have to do it, enlarge ourselves.

Ladies and gentlemen, let me be frank again.

Increasingly Europe also faces a China problem.

The five-years of this Commission were a watershed moment.

We moved away from ignoring the problem. Now, we have identified it. We stepped up. Going forward, Europe must act.

Issues are unfortunately piling up.

Take our cyberspace- where cyber-espionage, theft and attacks unfold every day by state and non-state actors.

Just recently the Dutch security agency, AIVD, found that Chinese State and non-State actors play a very active role.

Czechs and Lithuanians experienced that China can deploy economic blackmail in the power game.

China's approach to Europe is often summarised as: “strengthening itself and weakening others.”

China insists to have access to Europe's free marketplace. At the same time, it undercuts European industries.

China works to make us dependent on critical materials and make China less dependent on the rest of the world.

China wants to use our intellectual property to modernise and in parallel, cybertheft of that same intellectual property weakens our innovation power for tomorrow.

And there are challenges from China elsewhere in the world, that will affect us too.

Fundamentally, we do see a rising Beijing model which is at odds with everything that we see as cornerstone values for all of humanity: human rights and democracy.

China is seeking to outrank everyone economically - but ranks second lowest on press freedom. Only North Korea is lower.

The Indo-Pacific is already a hotspot of new geopolitical tensions.

This state-of-play doesn't mean that we should disengage from China, rather the contrary. China is too big to disengage from.

As President von der Leyen said, Europe must manage its relationship with China constructively and responsibly.

For one, Europe does need to insist on a fair and equal economic partnership.

And to show ourselves equal, we must show that indeed we act.

Defend key parts of our economy when Chinese subsidies or other State actions undercut fair competition or security in Europe.

Finally on geopolitics Europe faces a global battle between interests and values of superpowers.

What matters here is your success and our success at winning the hearts of minds of others.

Europe's vision for a strong society is challenged. Around the world, democracies and human rights are truly on the retreat.

So, Europe must be clear on its long game.

Its defence of that democracy and human rights. Commitment to the rule-of-law.

Its own economic vibrancy. And championship for climate action and a human-friendly digital revolution.

So therefore, we do truly need a Team Europe approach to serve those interests, with the Global South and beyond.

And we do need integrated action.

As European Union, we should dare to align our development aid, our trading power and our economic policies to our geo-strategic interests. Link them together and do that together with our Member States.

Climate leadership

Ladies and gentlemen,

In Grand Hotel Europa, Pfeiffer equates climate change with the loss of the love of his life and his creativity, an Italian woman named Clio.

She lingers in Italy- sinking in rising waters and overrun by mass tourists during the flooding.

Europe isn't that fatalistic: it wants to master climate action.

And that's urgent. Don't take my word for it. Don't take the word of any politicians for it. Listen to scientists.

Satellite data show that 2023 was the warmest year on record, surpassing the goal to limit global warming to 1.5 degrees. 2024 looks already at least as challenging, too.

By the way that is also a financial problem.

Take Slovenia. To rebuild after one terrible flood of a few days, Slovenia spent 16% of its GDP on basically the damages.

And it's a security problem.

When I was roughly your age my Erasmus exchange took me to Rome.

There, I had a professor, a Swedish-Italian called Staffan de Mistura.

Already in 2000, he said that humanity will fight conflicts about water and natural resources.

In his book “The Climate General” former Dutch chief-of-the military Tom Middendorp sees climate risk as security risk.

The military establishment confirms that climate action suffers during war - and fuels migration and conflict itself.

Now, as EU Climate Commissioner, I do see the security risk also coming to Europe.

Climate action is a planetary, a safety and an economic imperative- basically all in one.

Unfortunately, it will get worse before it gets better.

Europeans feel the urgency. Notably your generation, notably the young.

In every youth survey, climate change is a top concern. And that's logical: the future is your future.

Europe is on the ball. Our state-of-the-art climate framework fixes greenhouse gas emission reduction targets for 2030.We have a clear end-goal to be climate-neutral in 2050.

This ambition, this climate action, must be implemented across our economy in way that's fair for all citizens.

And that guarantees a competitive business case for our companies.

These 3 pillars of our climate agenda: ambition on climate action, a fair transition for our citizens and a competitive clean economy.

The next pillar we need to add to that is geopolitical. Europe cannot save the planet by cutting its 7% of global emissions. The rest of the world is responsible for the other 93%. And that needs to be tackled as well.

In Europe, we have a carbon market, an emission trading system, putting a price on CO2.

Companies then choose the technology to decarbonise and avoid this price.

That tool is absolutely world leading. It's our carrot, it is also our stick to persuade others in the world to take climate action.

For key products such as steel and cement, Europe's borders are effectively checkpoints for other countries to do their share.

For their products to enter Europe, they must face a CO2 price at home.

And if not, they actually pay a premium up to the CO2 price that European producers pay.

This environmental measure, the “Carbon Border Adjustment Mechanism”, can apply to more vital European products.

I believe we should start considering such an expansion.

Ultimately, the best field for international climate ambition is a level playing field on climate action.

Europe must therefore push for CO2 pricing in more countries all across the globe.

We now already have a special taskforce to push for more carbon markets worldwide.

And Europe will be entering the climate long game to remain a leader in that game.

Revamped Economy

Ladies and Gentlemen, Europe's third priority is to revamp our economy.

Yes, our economy will grow in the coming years- but only slightly.

And it is not good enough.

In many ways, we are outcompeted, out innovated and flatly outperformed.

By the Americans, by the Chinese and by others.

In domains from windmills to electric cars, we're flooded with subsidised products that are basically killing our industries.

Elsewhere, we've been at the mercy of the whims of others.

Russian gas has been the best example- critical raw materials for clean energy should certainly not be the next.

And one problem is that we are certainly not making enough use of our biggest powers: Europe's single market and attractiveness as a trade destination.

Another is our lack of liquidity compared to, say, the US.

For cash, our entrepreneurs turn too much to national banks.

They don't have a choice between banks and venture capital across Europe.

Fixing these vulnerabilities is necessary. And it is very much urgent.

Europe then needs a stronger path to sustainable economic growth.

And let me explain why, because in some corners, it's fashionable to say that we can do without growth.

My friendly advice: don't buy that product. Growth must be carbon-free. It must be sustainable. But we actually need to have more of that kind of growth.

In the next years, we must invest much more in domains like defence and security, energy transition and Artificial Intelligence. Expenditures will go up.

That's on top of basic expenses like healthcare and education.

And on top of that, throughout society, we want change to be fair. That all citizens and all of our Member States can actually share in the progress.

Then, all citizens, certainly the middle class at the heart of our society, have the ability to build a better future.

For all of that, the economic pie must increase. There basically is no other way.

I see three ingredients for that.

First, we must boost Europe's single market. And build one European market for capital.

Now more than ever, businesses need the scale to have global success.

And that requires a new Single Market Action plan to remove market barriers for business.

A rolling commitment to cut red tape for their business-case.

Most of all, our Single Market should serve our long game. We shouldn't drop competition inside our market - it gives us innovation at the best price.

We should use the Single Market to beat unfair competition which is coming from the outside.

We should no longer award government contracts with a race down to lowest price.

Tenders should trigger a race-to-the- top on quality, social and environmental responsibility, where European businesses are actually very strong.

And where necessary, let's change Europe's procurement rules to facilitate it.

The second ingredient for economic success is to mobilise over-investment in the clear areas for future growth.

Clean energy, technology, digital solutions and innovation.

Third, we do need more economic reforms, both at European and at Member State level. We know that is quite often not easy, but that it must be done.

Ladies and gentlemen, growth that is smart and sustainable; that's the product with long-term guarantee for European wealth.

Fixing Migration

The fourth issue, the fourth issue to fix is the combination of migration and integration. Those will define politics in Europe.

Europe abolished borders between Member States and every day we – as students, employees or holidaymakers, we actually enjoy the benefits.

But what we forgot to do was to protect Europe's external borders- and the effects are very significant.

Migration up-ends harmony in Member States.

Not only at Europe's fringes: the points of transit and arrival.

We also see that in places like the Netherlands: densely populated, where migration immediately impacts availability of housing, healthcare and education.

Countries around Europe are struggling, because integration is too often mediocre at best.

So, we must act. Europe and Member States together.

Last week, Europe finalized its Migration Pact. After 10 years, and you can count how many university studies you can do in that time, of divisive discussion - historic.

Under that Pact, migration control becomes stricter.

New border centres will be created for migrants. Migrants are often in the hands of criminal smugglers taking them through dangerous deserts and over deadly seas- with no chance to stay.

Migrants with low chances to stay, get quicker clarity in a border procedure of a maximum three months.

They should return to country-of-origin.

Like that, we can do our fair share to help real refugees.

But let's implement all of these changes with speed and rigour.

But the issue will stay with us. We must up the game.

First, we must invest far more in border control- together. Build the border centres quickly- measuring the progress.

Second, safe countries of origin and transit must take their responsibility.

Only one in five migrants who cannot stay return to these countries and that is unacceptable.

We need more EU-deals with countries around the Mediterranean and African nations where migrants actually start.

A strong EU-approach works in this realm.

Third, Pacts on Migration don't guarantee integration.

Too often, integration isn't working well enough. In many neighbourhoods, parallel societies developed.

The solution isn't to sugar coat or to pamper. It's to raise the bar and set expectations for integration.

Taking part in our society isn't an option in the travel deal.

Our package comes with a job, learning a language, being an active citizen who embraces freedom, democracy and equality: that are the cornerstones of European way-of-life.

The paradox will be that being stricter, expecting reciprocity, we will help those who are already here and those who arrive.

AI made-in-Europe

Ladies and gentlemen, that brings me to my fifth and final topic.

Pfeiffer wrote masterpiece with Grand Hotel Europa. And the question is: could AI write the sequel? Or rather: by when will it write the sequel?

I'm the first to admit that on AI, I'm very much a student myself, with lots to learn.

But what I do know is that AI will profoundly change life in ways that we cannot yet fully comprehend.

AI, many say, is already better at finding bone fractures, than a radiologist after 10 years of studying.

It teaches a robot to fight Kung-Fu in a few minutes, whilst martial artists train for a lifetime.

Your generation will be the one meeting AI that reads and displays emotions: potential partners to marry, if you believe the movie “Her”. Some of you might have seen it.

And recently I spoke with an expert, who said that AI could well mean the end of human civilization.

So, AI is not only poorly understood, but it is also truly very big. It's therefore a new frontier of global powerplay.

Now many countries are now looking to regulate AI. And Europe has the scoop.

We have a rulebook to ensure human oversight and manage risk.

Now is no time to stop. We should not just import AI and regulate it.

We should create AI with European values and export it as the new global golden standard.

If we miss that advantage, allow the next foreign digital giant to sweep in, and AI is out of Europe's hands.

By having the rules before the others, we have a unique window of opportunity to lead.

And in many ways people would call this is a man-on-the-moon moment.

We need a lean execution of our AI rulebook.

A quick technological ramp-up across the Single Market.

And mobilise investment.

Last year, just to give you one figure, Europe's goal to attract 20 billion euros a year for AI, was outperformed by two AI companies from America alone.

We must increase investment goals and fix a clear agenda to reach them.

Let's use this short window to play the long game. Let's lead on AI in the world.

Conclusion

So dear students let me conclude

This continent is truly an amazing place.

But its freedoms, values and its place in the world however is under severe threat.

Fortunately, the future is upon us and certainly upon you to. “It ain't cast in stone.” It can be shaped.

Let's do so.

You have much more future ahead of you than my generation has.

At least, help us to solidify Europe's democracy and let's make it concrete.

In June, you can choose the Europe that you want to see.

You're all eligible to vote.

Go vote!


Zařazenoút 21.05.2024 12:05:00
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