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2010-10-14 | All chapters

"More Europe in needed"
Europolitics, 13th October,2010

The recent economic and financial crisis has, once more, demonstrated the impact of globalisation on the European economy. Keeping our market share has become increasingly difficult, especially in fast growing markets, and even at home. It is clear that “more Europe” is needed to develop a coherent and effective response to the challenges of globalisation; to make sure these challenges can be turned into opportunities.

Some framework conditions have been put in place to develop such strategy: the Lisbon Treaty provides the EU with enhanced competence on the international scene; the Small Business Act addresses the need to support the internationalisation of SMEs; the Global Europe strategy focuses on a more proactive market access strategy, and finally, the ICI+ Regulation should provide financial resources to take concrete initiatives in this respect.

So while we all agree on this need for more 'European economic diplomacy', the question is how to do it: which type of actions should be developed, who should take responsibility?

According to Eurochambres, four guiding principles should be respected:

First, it is of prime importance that support provided by the EU to SMEs is complementary to what already exists in the target market but also in their home base. Duplication of already existing activities and market structures would lead to a situation of competition and in some cases even unfair competition. 

More than just complementing, successful EU initiatives will be those that can build on the capacity of existing service providers.

As a consequence, any EU efforts should therefore identify the European value added. These can be various: bringing in the European dimension to activities can ensure a higher level of visibility; activities may also be developed at European level for reasons of confidentiality (on market access issues, for example); a European approach can also be justified by the level of specialisation, which does not justify a national approach.

Most importantly, initiatives should be linked to relevant EU policies. One obvious example is the development of services related to trade policy and trade negotiations (market access, IPR, standards). Here, they could provide a clear transnational added value as a strong voice for European businesses towards the institutions in the target countries.

Eurochambres strongly believes that the strategy of EU support to SMEs targeting external markets needs to be developed through a public-private partnership (PPP). This means the full involvement of private sector representatives, both in the target markets and at home, on the basis of shared ownership and shared responsibility.

Relevant stakeholders should include the EU and the bilateral European chambers of commerce in the countries concerned, but also their counterparts inside Europe, where the 'target' SMEs are based.

Translating those principles into reality has proven to be difficult; building a European strategy requires time, vision and solidarity – which do not always come first in times of crisis.

The European Business and Technology Centre (EBTC) in India has been the first pilot. With a clear focus on promoting European 'clean' technology and facilitating market access towards India, the EBTC has identified its niche. Activities are developed both demand-driven – from European companies, researchers and member states alike – and policy-driven; the EBTC should 'translate' European policy priorities into practice.

Member state representations and bilateral chambers in India have now embraced the EBTC as a vehicle to realise their activities and work together, under the European flag.

A similar process has been launched in China and in South-East Asia. In Beijing, an EU SME Centre is soon to be opened, working hand in hand with the EU Chamber of Commerce in China (EUCCC) and the bi-national chambers on the ground, and Eurochambres in Europe. In Bangkok, an EU-ASEAN Centre is to be opened before the end of the year with a similar setup, gathering the relevant stakeholders on the ground and in Europe to develop a demand-driven and sustainable operation.

More such centres may be developed. Eurochambres works hand in hand with the EU institutions to develop a coherent strategy, making sure that these efforts add value and have a long-term perspective.

Clearly, such business centres will not by themselves secure the competitiveness of our business on global markets. In parallel, the EU needs to continue the various trade negotiations and come to tangible results as quickly as possible. Efforts should also be increased to protect property rights more effectively and to fight against various non-tariff barriers.

The European Union continues to be the largest trading bloc in the world, and has been an example for successful economic and political integration. It should embrace globalisation with confidence and a single vision, to the benefit of all.

(*) Alessandro Barberis is president of Eurochambres, the Association of European Chambers of Commerce and Industry www.eurochambres.eu