Winter 2002 Volume 3 - Number 1

Leader in Focus
Defense and Security
Trade Relations
Special Report
Industry and Technology
European Integration
Opinion
Food Safety and Biotechnology
Politics and Society
Book Review
Letters to the Editor

Letter From the Publisher

Leader in Focus

The Spanish Presidency Proposes "More Europe"
José Mar'a Aznar L„pez, Prime Minister of Spain

Spain has six main priorities for its stint in the EU's presidential chair during the first half of 2002: the fight against terrorism; the introduction of the euro; the continuation of economic and social reform; meeting the target dates for EU enlargement; strengthening the EU's foreign and security policy and focusing the burgeoning debate on the future of Europe. If Madrid can succeed in these aims, it will have delivered "more Europe" to the EU's citizens.

Defense and Security

How to Clean Up the Mess of NATO's Incompatible Weapons
Robert G. Bell, Assistant Secretary General for Defense Support, NATO

The problems of weapons that are incompatible with those of allies, or even with those of other branches of a nation's own armed forces, have a long history. NATO has been grappling for years with plans to make its weapons systems interoperable, and set common standards for new systems. These problems have again been underlined by wars in the Balkans and in Afghanistan. The aim must be to pursue more common weapons programs, rather than simply to make existing national systems interoperable.

Trade Relations

The Success Stories Behind the Agreement in Doha
Peter F. Allgeier, Deputy U.S. Trade Representative

Two of the most important reasons for the success of the World Trade Organization meeting in Doha were close collaboration between the United States and the European Union and a new, more constructive approach by developing countries. Both of these encouraging new trends must be maintained if the WTO is to complete the new trade negotiations launched at Doha within the limited three-year time frame.

The Developing Countries Came of Age in Doha
Carlo Trojan, Head of the EU Delegation to the WTO

The launching of a new trade round in Doha last November was made possible by the "coming of age" of the developing world. This development dimension made the difference between failure in Seattle at the end of 1999 and success in Doha. Still, the EU achieved most of its strategic objectives. The new round should help to set new rules to harness globalization and promote sustainable development.

The Trade Talks Must Not Be Limited to the WTO
Alan P. Larson, Under Secretary for Economic, Business and Agricultural Affairs, U.S. Department of State

As they engage in a new round of world trade negotiations, the United States and its trading partners must absorb the lessons they learned in agreeing to start the round. No opportunities must be lost for advancing the negotiations in other fora, such as the United Nations and regional and bilateral trade agreements.

A Brazilian View: Fairer Farm Trade Will Be Crucial
Rubens Barbosa, Ambassador of Brazil to the United States

Special Report
Transatlantic Approaches to Energy Policy

There Is Plenty of Scope for Transatlantic Energy Cooperation
Christel Möller, Director General for Energy, German Ministry of Economy & Technology

U.S. and European energy policies have much more in common than sometimes thought. On both sides of the Atlantic, it is agreed that energy policy has acquired new significance for economic development, that it must be a key focus of foreign policy and that climate protection must have high priority if energy policies are to enjoy a viable future. There remain important differences in the structure of actual energy markets. But there is no lack of multilateral and bilateral issues for closer cooperation between the United States and Europe.

Energy Deregulation Does Not Have to End in Tears
Callum McCarthy, Chairman, British Office of Gas and Electricity Markets

The deregulation and privatization of the electricity and gas industries in Britain, which started 15 years ago, has been a great success. It has introduced genuine competition and significantly lowered prices for consumers. Further important choices lie ahead, but the aim will be to build on, not replace, the deregulated system.

The Bush Administration Wants International Cooperation on Energy
Vicky A. Bailey, Assistant Secretary for International Affairs and Domestic Policy, U.S. Department of Energy

The attacks of September 11 have highlighted the need for the United States to pay greater attention to energy supplies and the security of the country's energy infrastructure. Many measures to achieve such objectives were proposed in the Bush Administration's National Energy Policy last May. The Bush energy plan also aims to reduce dependence on imported energy, particularly from the Middle East, promote the use of renewable resources and new energy technologies, find innovative ways of dealing with global climate change and integrate international energy markets.

Industry and Technology

Electronic Europe Is Doing Fine but Needs New Impetus
Erkki Liikanen, European Commissioner for Enterprise and the Information Society

The European Union has made important progress in implementing its eEurope Action Plan, which aims at accelerating progress toward making the EU the world's most dynamic and knowledge-based economy. A major step forward was the approval in December of a new regulatory framework for electronic communications. But much remains to be done, and new efforts are needed to keep electronic Europe at the top of the political agenda.

European Integration

After Laeken: Europe Enters a Decisive Phase
Philippe Lemaître, Brussels Correspondent, European Affairs

The decision taken by EU leaders to set up a Convention that will propose the next steps toward European integration opens a critical phase in the construction of a united and enlarged Europe. The choice of former French President Valéry Giscard d'Estaing to preside over the Convention is a good one. He is likely to go for far more ambitious proposals than governments have previously envisaged. It seems that much of European public opinion would welcome bold moves.

Leaders of "Out" Countries Hope for Eurozone Success
Alasdair Murray, Director, Economics and Business Unit, Centre for European Reform, London

The leaders of Britain, Denmark and Sweden, which are staying outside the European Union's single currency, are hoping that the introduction of euro bills and coins can be completed successfully. These leaders, who are generally pro-euro, believe that it will be easier to persuade their skeptical electorates to join the eurozone when the new bills and coins become familiar and unthreatening to voters in the three so-called "out" countries. A continuing poor economic performance by the eurozone would also undermine the pro-euro cause in the non-member countries.

Opinion

The Euro Is Political, But it Will Bring Major Economic Changes
Arne Jon Isachsen, Professor, The Norwegian School of Management

The introduction of euro bills and coins on January 1 will draw much greater attention to Europe's single currency. The euro, which hitherto existed only in financial and accounting transactions, has already made an impact in the European Union. It has facilitated mergers and acquisitions, opened up capital markets and made prices much more transparent. Now that the currency has finally appeared in concrete form it is likely to take over more business from the dollar.

Food Safety and Biotechnology

We Must Restore Consumer Confidence in Food
David Byrne, European Commissioner for Health and Consumer Protection

The European Union's prime objective in food policy must be to protect the interests of consumers, by providing them with more information on what they buy, and by following the precautionary principle, which urges us to beware of new products until they are scientifically approved. Many Europeans do not want to be forced to eat genetically modified products. A restoration of public confidence in Europe will be helped by the new European Food Authority, which will be responsible for risk assessment and scientific advice. We also need to get away from irrational fears and exaggerations in this debate.

Politics and Society

Europe Outdistances America in Corporate Social Responsibility
Susan Ariel Aaronson, Senior Fellow, National Policy Association

European companies are far ahead of their U.S. counterparts in embracing the concept of Corporate Social Responsibility, under which they attempt to monitor and improve the social and environmental effects of their business activities on local communities and on the wider world. In contrast to the United States, European governments are also aiding the development of such practices. There is a growing body of evidence that the adoption of CSR will help companies to compete in many marketplaces, leaving U.S. corporations at a disadvantage.

Book Review

Is North Africa Stuck with Europe?
Reviewed by Roger Levy

Is North Africa Stuck with Europe?
A Comparative Political Economy of Tunisia and Morocco:
On the Outside of Europe Looking In. By Gregory White

Letters to the Editor

Louis R. Golino: The EU Should Get its Act Together Internationally