Five challenges for five decisive years in Europe

For years, European citizens in general, and Spaniards in particular, have felt a certain apathy towards the European elections. However, we have progressively understood how decisions from Brussels influence national policies. Never in the recent history of our country has Europe played a more decisive role in ensuring the prosperity and security of its citizens. Today, June 9, beyond national political quarrels, we vote on the challenges of the Union and its future.

The war in Ukraine after the Russian invasion represents the greatest challenge. The end of the conflict will only come after a negotiation between both parties, but Europe must provide military and economic support so that Ukraine begins this negotiation in a position of strength. Furthermore, it is important to advance its accession to the Union, showing its citizens the benefits of being part of the bloc.

The second challenge is the position regarding trade and military tensions between the United States and China. Europe does not have to be equidistant, but neither should it copy American policies without considering their cost. The European economy shows greater openness to world trade than the North American economy, and imports and exports represent more than half of European GDP. However, it is important to set limits on Chinese policies. Due to both its industrial policy and its size, China is the largest exporter of goods and also of economic distortions, which negatively impact European companies and undermine confidence in the market system.

Improving productivity is another of the great challenges. In the 1990s, productivity was on par with that of the United States, but today the North American economy is 20% larger. Spending on research and development, key to long-term growth, is ranked in the Union, as a percentage of GDP, behind the United States, China, Japan and South Korea. But, above all, it is behind the 3% objective set more than twenty years ago in the Lisbon Agenda.

The European gap in this indicator is a symptom of other, deeper deficiencies. The effective application of digital services in the productive fabric is the fourth challenge. In modern economies like the European one, technology is one of the main drivers of national competitiveness. Technology that, increasingly, reaches us through digital services. It’s true, Europe does not have a European Google. But he doesn’t need it either. The true engine of economic growth is not found in the invention of new technologies, but in their application. However, European companies invest significantly less than North American companies in the use of digital technologies within their production processes, whether in investments in IT assets or in intangibles such as software, databases or artificial intelligence.

Not fearing the security-economic growth binomial is the fifth European challenge. This pairing is often presented as a dilemma in which countries must choose to win one over the other. On the contrary, in most cases this is not the case. A vibrant economy, with innovative companies, is capable of generating not only greater resources, part of which can be dedicated to defense objectives, but also directly contributing to national security.

A European Union with clear allies, greater growth in its productivity, greater investments in research and innovation, and capable of integrating its markets for goods, services, capital and technology will be not only more prosperous, but also more secure and autonomous. The work of the European Parliament on these issues is fundamental. Its members shape the public policies and regulations that constitute the rules of the game of our economy. Today’s elections will determine Europe’s path in five vital years for the positioning of the Union.

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