Our economies, our resources and our security are all under pressure. That is why the priorities set out by the Latvian EU council presidency are particularly timely, focusing on economic competitiveness, Europe’s digital potential, energy security and our eastern neighbours.
As the commission gets down to work, we look forward to details of first vice-president Frans Timmermans’ efforts towards a leaner work programme. We will not support any proposals that are hangovers of a 1950s mentality of European integration. However, we recognise that some in commission president Jean-Claude Juncker’s team are seeking more focused action.
Much of the commission’s work is arranged in themes - often under headings followed by the word 'union', such as capital markets union, banking union and energy union. Let us get away from the idea that the EU needs any more regulatory 'unions' and focus on delivering results. Rather than speaking about a capital markets 'union', let us seek open, transparent and well-functioning capital markets so that individuals, entrepreneurs and firms can reduce their reliance on banks for financing. Instead of an energy 'union', let us focus on reducing our reliance on unpleasant regimes by diversifying supply, increasing interconnectors and improving energy efficiency.
"Either we allow the weaker economies to exit the euro, or pro-euro politicians in richer eurozone countries will have to admit to their taxpayers that they will forever have to fund the weaker eurozone countries via fiscal transfers"
The EU saw far too many headline-grabbing gimmicks under the Barroso commission. This new team must not go down the same path. Its first test will be turning its proposals for an investment fund into a reality.
While the jury is still out on whether this fund will leverage private investment without burdening new risks onto the taxpayer, the proposal has kick-started a debate about attracting private investment. The ECR will seek to demonstrate how crowd funding, microfinance and non-bank finance can be used to help companies take on that one extra person and reduce unemployment.
Another fashionable phrase often heard around Brussels is the digital single market. We all want digital companies to serve customers across and outside the EU, but we need more than words. Based on a G20 forecast, the internet economy will grow by eight per cent every year for the next five years.
To take advantage of this growth, legislation must set core principles for removing physical barriers, ensuring rights, protecting against fraud and copyright abuses, and improving logistics. Prescriptive red tape or a 'one size fits all' mentality will see barriers erected and the eight per cent growth - that should have arisen in Europe - will instead arise elsewhere.
Finally, we cannot continue to ignore the elephant in the room - the euro crisis. Either we allow the weaker economies to exit the euro, or pro-euro politicians in richer Eurozone countries will have to admit to their taxpayers that they will forever have to fund the weaker Eurozone countries via fiscal transfers. Unless such bold actions are taken, the single currency will continue to act as a tear in the side of a ship; we can possibly bail out enough water each time to stop it from sinking, but it continues to weigh us down in the water.
So in 2015 we have a lot of hard work to do. Much of it will be quiet work to deliver on a few clear priorities, but the EU’s new year’s resolution for 2015 must be to do less and do it better.