Speech Ben Knapen at Tsinghua University
Speech by the Dutch Minister for European Affairs and International Cooperation, Ben Knapen, at Tsinghua University, 29 November 2011, Beijing
Ladies and gentlemen,
It is a great privilege to speak at this prestigious university. The topic of my speech will focus on the eurocrisis. Not least because this crisis not only affects Europe and the Europeans, but harms China and the Chinese as well. Just consider the devaluating of debt securities, the decreasing export to our continent and the turmoil in international markets.
My country and other member states are fully aware of the fact that serious doubts rose on our ability to tackle this crisis. But let me assure you that we are working hard to solve the problems that began with the 2008 global debt crisis. Some EU member states proved to be unable to absorb the shocks caused by this crisis.
Public debt and government deficits are obviously to blame, but the countries’ disability to absorb market chocks was also the result of macro-economic imbalances and a serious delay in restructuring their economies. And, let’s be honest, the community’s powers to intervene were highly insufficient, considering the ever closer integration of the financial sector in the eurozone.
The way the euro countries address this crisis may seem rather chaotic to you. And indeed, our approach left much to be desired. But we must not forget that important steps have been taken. In May 2010, the European Financial Stability Facility was founded. In January 2011, a new architecture for the governance of the European financial sector was adopted. In September of this year, the monitoring of budget discipline was intensified. And last month, the Greek debts were voluntarily restructured, the Europeans banks were recapitalised and the Financial Stability Facility was made more flexible.
Having said this, there is obviously still a lot of work to be done. My government is fully committed to a series of measures to ensure recovery within the eurozone. Cooperation with the IMF, for example, should leverage the Financial Stability Facility. And for the long term, structural reforms are needed as well.
Please allow to mention the five most important ones in random order. One: independent monitoring of national budgets by the European Commission. Two: correction of macro-economic imbalances within the eurozone. Three: a clear agreement on economic reforms in weaker eurocountries like Italy and Greece. Four: strengthening growth by refining the internal market and by an increase in trade agreements. And five: a smarter and more effective regulation of the financial sector in the eurozone.
Ladies and gentlemen, China might help to solve our problems in the eurozone, just as European countries have shown their solidarity in several debt crises over the last twenty years.
China and others are considering to support the European Financial Stability Facility through the IMF. We strongly support the concept of stakeholdership in which countries according to their position feel urged to take responsibility for the multilateral system at large.
The problems within the eurozone also create chances for China to enlarge its economic interests in the European Union. Having said this, let’s not forget there is no reason to feel sorry for Europe and its inhabitants.
Our continent accounts for more than a quarter of the world’s gross domestic product, the eurozone accounts for 19 percent. Nine of 15 countries with a Triple A Status are European; six of them lie within the eurozone.
And there’s more, much more. The eurozone is the world’s biggest trade bloc. The average public debt and government deficits are lower than in the United States and Japan. The 2010 inflation in the eurozone was the lowest of the whole world. And with the “Everything But Arms Initiative” Europe provides developing countries with the best trade preferences – duty free, quota free.
Besides from economics, Europe also has an important role to play on the international stage. We account for 60 percent of all development cooperation. We take the lead in the fight against climate change. And EU member states are highly involved in conflict resolution and peacekeeping, from Afghanistan to Somalia.
Having said that, let me finish with a more philosophical note. I know that among scholars on history and international affairs there has always been – and still is – a temptation to see history through the lens of rise and decline. Countries rise and countries decline. With all sort of tensions that go along with it. You can see bookshelves full of titles on the decline and fall of empires, of Europe, of the West. In France they have even a name for it, “les déclinistes”. But let me assure you, I am strongly convinced these are concepts from the past – they don’t fit into a globalised world. In this world ideas, industrial concepts, fashion trends move fast, are footloose in a way that betrays old-fashioned and static concepts of nations as well-defined, closed entities. In a world where Facebook is the third biggest country after China and India international relations are a fast changing phenomenon.
If Europe solves its problems, and I am convinced it can, the paths of China and Europe will cross inevitably in the future as they have done in the past. Let’s secure that this encounter will be mutually beneficial.
Thank you.