The European Union's top economic official Joaquin Almunia urged on Monday the bloc for a stronger foreign economic policy so that it can exert influence on global economic policy.
"Europe is clearly rising to the immediate challenges, and we are at the core of efforts to shape the world that will emerge from this global crisis," Almunia, Economic and Monetary Affairs Commissioner said in a speech at a seminar, hailing the role EU has played in initiating the G20 summits and fighting the global crisis.
"But if we want to succeed in promoting our agenda at international level from now on, we ought to further coordinate our positions, maintain a united front and speak with a single voice to our G20 partners," he added.
"This is no the case," he noted, "Too often the EU's voice on key issues at the global level is fractured and we fail to influence policy debates as effectively as we might."
"There is thus enormous scope for Europe to build on recent experience, to develop more coherent positions on international policy issues and strengthen our external economic agenda," Almunia said.
"Now is the right time for Europe to explore how to act together in the international economic and financial arena," he said, "Our task is all the more relevant given that serious, concrete progress on this front is becoming increasingly urgent."
"Despite our global currency and single monetary and exchange rate policy, the euro area has limited capacity to convey an assertive message on questions which directly impact our economy," he said.
He said that the EU grouping 27 nation is the world's biggest economic entity surpassing the United States in terms of population, gross domestic product and trade flows.
The euro, used in 16 EU countries, is the world's second most important currency. Unless Europeans are united on key issues and act together, non-European interests in international institutions like the IMF will prevail, Almunia said.
"At the moment when the EU needs to be more assertive and influential in the global economic arena, this is the best way to play a real role in policy making at the international level," he said. "If we don't manage to act together as Europeans, the non-european interests will prevail. Therefore, we need to build a genuine international strategy for foreign economic policy."
"First and foremost, I consider it crucial for the European Union to consolidate its voice in the global institutions, most importantly in the IMF," he said.
"However, such a combined and effective response on most issues related to the IMF is difficult to achieve, as European representation at the IMF continues to be fragmented," he said.
"There are currently several European seats on the IMF board, and even the euro-area members have separate seats," he said, adding the case for a single euro-area chair was obvious.
"Yet, member states concerned jealously guard their seats," he pointed out.
Going beyond the IMF, there would continue to be macroeconomic dialogue and coordination in the G-groups of countries: the G7, the G8 and the G20, he said.
"Europe must also do better at consolidating our voice within these groups on questions of macroeconomic policy, whereas at the present time, the representation of euro area countries remains fragmented and incomplete." Almunia said.
"So despite our global currency and single monetary and exchange rate policy, the euro area has limited capacity to convey an assertive message on questions which directly impact our economy," he added.
(Xinhua News Agency April 7, 2009)
