Fall 2004 Volume 5 - Number 3

European Perspectives
Leader in Focus
Transatlantic Relations
European Integration
Cover Story
European Economic Reform
The Bush Energy Policy
Industry and Technology
Opinion
Book Reviews

Letter from the Editor: The U.S. and Europe - Time for a Fresh Start

European Perspectives

Europe Is Contesting the American Dream
Jeremy Rifkin, President, Foundation on Economic Trends

Do Europeans Really Have to Work Harder?
James Arnold, BBC News Online

Challenges Facing the EU: A Business View
Catherine Stewart,Managing Director, Cabinet Stewart, Brussels

Leader in Focus

Madrid Seeks a National Consensus on Foreign Policy
By Miguel Ángel Moratinos,Minister of Foreign Affairs of Spain
The new Spanish Socialist government has been particularly active in foreign policy. On important issues, it has adopted different policies from those of its center-right predecessor. It has withdrawn Spanish forces from Iraq and sought to rebuild relations with France and Germany. Nevertheless, it wants to reach agreement with the opposition on a set of basic principles to guide Spain's foreign policy, so as to maintain continuity and promote the country's long-term national interests.

Transatlantic Relations

A Chance to Rebuild the Transatlantic Partnership
Günter Burghardt, Head of the Delegation of the European Commission
An unprecedented conjunction of leadership changes in Europe and the United States has set the stage for rebuilding the Transatlantic relationship after a period of serious disagreements. We should try to get back to the fundamental principles of postwar U.S.-European
cooperation, including U.S. support for European integration and a firm commitment to multilateralism. The two sides should draw up a comprehensive strategic, economic and foreign policy agenda for creating a closer Transatlantic partnership.

European Integration

Europe Could Become the First "Post-Modern" Superpower
Ulrike Guérot, Director Foreign Policy, Europe, The German Marshall Fund of the United States, Berlin
The European Union is likely to remain a work in progress, with an unknown final destination, for the foreseeable future. Nevertheless, fear of the consequences of a No vote may induce most Europeans to ratify the proposed European constitution, which provides for the EU to play a
greater world role. Pressure from further enlargement, including the probable entry of Turkey, will also force the EU to redefine itself as a global power that spends more money on defense and security but emphasizes global cooperation over the unilateral exercise of power.

The EU Must Foster the Fragile Democracies of Central Europe
Krzysztof Bobinski, Deputy President, The Unia and Polska Foundation,Warsaw
The enlargement of the EU to include former Soviet bloc countries requires major changes of
attitude by European leaders. If they are to strengthen the fragile emocracies and economies of the new member states, as well as win popular support for the European project, they must look to the many advantages of EU enlargement for the continent as a whole, and not strike
poses aimed at pandering to domestic political audiences.

New Members See Enlargement as Hindering Further Integration
Robin Shepherd, Adjunct Fellow, Center for Strategic and International Studies
There is significant support for the proposed European constitution in the new EU member states in Central and Eastern Europe. But most people in the region believe that enlargement has weakened prospects for deeper EU-wide integration and reaffirmed the durability of the
nation state. The new members have adapted quite easily to life in the European Union, but they have imported a number of foreign policy problems.

Cover Story:
Does Turkey Belong in the European Union?

Turkey's Entry Bid Will Oblige the EU to Define its own Identity
Ahmet K. Han, Kadir Has University, Istanbul
Turkey has been struggling along a rocky path to EU membership for more than 40 years. Finally, entry negotiations are likely to start next year, forcing the European Union to decide whether Turkey - a large, relatively poor Muslim country mostly outside the traditional European geographical area - qualifies for membership. Turkey would still have to wait many
years to become a member, and difficult social, economic and political issues would have to be addressed. But the need to address them could oblige the European Union to clarify its own fundamental values, and its moral and political identity.

The Prospect of Turkish Entry Will Hasten a Multi-Speed Europe
John Palmer, Political Director, European Policy Centre
The probable opening of entry negotiations with Turkey in 2005 does not mean that Turkey will inevitably join the European Union. The negotiations could take 10 to 15 years, by which
time both Turkey and the European Union will have significantly changed. Powerful forces are pushing the EU's current members to integrate further, albeit at different speeds. The prospect of Turkish membership will add to the pressures for groups of countries to adopt varying degrees of integration.

A Cautious Yes to Ankara, But Concerns Remain
Toivo Tänavsuu, Correspondent for EU issues, Eesti Päevaleht, Estonia
The European Commission in October gave a qualified Yes to Ankara's longstanding request to begin EU entry negotiations. But there is still considerable opposition among the general public and some EU governments. The talks could be suspended if the European Union wanted to apply the brakes.

European Economic Reform


EU Governments Should Be the Agents of Change
Martin Neil Baily, Senior Fellow and Jacob Funk Kirkegaard, Research Associate, Institute for International Economics
The European Union has made some progress, but not nearly enough, toward reaching its goal of becoming the world's most competitive and dynamic economy by 2010. Some countries, such as the Netherlands, Sweden and Denmark, have done much better than others in introducing economic reforms without abandoning their welfare state social models. But
European governments must now step up the pace and adopt a wide range of structural reforms, in areas ranging from land use to labor market flexibility.

The ECB Must First Break the Policy Deadlock
Daniel Gros, Director, Centre for European Policy Studies; Thomas Mayer Managing Director and Chief European Economist, Deutsche Bank London and Angel Ubide, Director of Global Economics, Tudor Investment Corporation
The 12-nation euro area is stuck in a vicious cycle of low growth, budget deficits and mounting political opposition to economic reform. There is growing danger of a breakdown in the policy making structure of the European Union, even of a loss of independence by the European
Central Bank. It is urgent that the ECB now act first to break the deadlock by adopting a loose monetary policy to promote growth and investment and give fiscal and structural policy a chance to speed up reform.

The Bush Energy Policy

The U.S.Has a Global Agenda for Cleaner,More Abundant Energy
Paula Dobriansky, Under Secretary for Global Affairs, U.S. Department of State
The United States is committed to implementing international agreements to develop cleaner and more reliable forms of energy and make them more available to developing countries. Washington is working through partnerships with other countries, multilateral institutions
and the private sector.Washington is also focusing on developing new technologies and renewable energy sources that will be able to compete in the marketplace with more traditional sources of energy supplies.

We Want Hydrogen-Powered Cars on the Road by 2020
JoAnn Milliken, Chief Engineer, Office of Hydrogen, Fuel Cells & Infrastructure Technologies, U.S. Department of Energy
The incoming administration will continue to pursue President Bush's hydrogen fuel initiative, designed to reduce dependence on petroleum products in the transportation sector, responsible for two-thirds of total U.S. oil consumption. The ambitious target is to enable Americans to
start driving hydrogen or fuel cell-powered vehicles by 2020, but it will take another two decades after that to complete the transition to a full hydrogen economy.

Industry and Technology

Nobody Wins if Wireless Technology Is Over-Regulated
Paul Franklin, Group Vice President, Regulation and Public Policy, Orange SA
Europe is proud of its world leadership in wireless, or mobile, technology, even though it has suffered some setbacks in recent years. As new technologies and services are introduced, it is
important that regulators strike a balance between protecting consumer interests and
encouraging new investment that could lead to beneficial new services in future. While Americans can also learn from Europeans, the European Union should follow the United States in letting markets function more freely

Opinion

How to Outflank al Qaeda in the Balkans
Joel E. Starr, Chief of Staff/Legislative Director, Office of the Assistant Administrator for Legislative and Public Affairs, U.S. Agency for International Development
The economically distressed Balkan countries, with their large unemployed Muslim populations, could be a fertile recruiting ground for al Qaeda and other fundamentalist terrorist organizations. So far, radical Islam has been held in check by the Balkan Muslims' secularism,
pro-Americanism and regional xenophobia. The United States should seize the opportunity to recruit Muslims in the region as Western agents in the war against terror.

Book Reviews

A Cordial Debate on a Love-Hate Relationship
Dangerous De-Liaisons: What's Really Behind the War between France and the U.S. by Jean-Marie Colombani and Walter Wells
Reviewed by Reginald Dale


The U.S. and Europe Share the Blame for the Iraqi Crisis
Allies at War: America, Europe and the Crisis over Iraq by Philip Gordon and Jeremy Shapiro
Reviewed by Louis Golino

For Further Reading