VIENNA ECONOMIC FORUM(VEF) WAS HELD IN VIENNA ON NOVEMBER 9-10, 2009

DR. AKKAN SUVER’S SPEECH ON “POST CRISIS IN EU” AT THE THIRD PLENARY SESSION OF DAY 1

        Honorable President,

        Ladies and Gentlemen,

        I salute big family of Vienna Economic Forum with a profound delightfulness.

        I present my sincere gratitude to Honorable Dr. Erhard Busek and Honorable Ambassador Dr. Elena Kirtcheva for hosting us in Vienna and allowing us to exchange our opinions.

        If you don’ t mind, I would like to express my personal aspect on the issue of “Post Crisis in EU”.

    While EU has been struggling with crisis, politicians inquire the priorities. Issues of economic crisis and on the other hand anxiety of safety make the EU’s agenda complicated.

        Priorities of Europe between the years 2010-2015 have been compiled under the report by the Marmara Group Foundation and it is commented that EU may slightly fall down in economic and political arena after the biggest economic crisis that EU has ever seen.

        Risks surround everywhere. Economic crisis causes to increase national budget deficits  and also the public debt ratios up to 20 % of the National Income. Retirement and health expenditures of the old population in EU definitely rise day by day.

        Simple accession to the capital and enlargement in financial markets cause to be interrogated of the economic growth model. Following the strict regulations on taking risk and financial innovation, it is expected that potantial economic growth of EU slows down despite the highly increasing growth rate of The People’ s Republic of China, Brasil and India. There will be lots of piece of works in EU’s busy agenda which have to be resolved at nearest term. Agenda comprises the defending of European Common Market against national protection movements, the healing of the finance sector, the supporting of Central and Eastern European (CEE) countries which they have been affected by the crisis, the struggling against the increasing unemployment rate and finally the signing of the treaty of the global warming during the Copenhagen Summit on December 6-18,2009.

        One of the specific outcomes of our report states that “Difficulties facing in short – term caused by the economic crisis take place of the long – term difficulties of EU in mean of priority”. EU has to make the right decision on its policies otherwise a question would come up: What is the meaning of EU for its own citizens and again what is the meaning of EU for the rest of the world?

        Image of EU depends on the policies that will be arisen for the short – term difficulties by defending its strategic vision. It’ s not easy to find the right balance. EU has to give its priorities especially on the issues of high level assignations and reconstruction of the institutional structure until the end of November 2009.  

        Reelection of Jose Manuel Barroso as the President concretes the stability of the European Commission. Greens and Socialists in the Parliament have not supported him and had preferred to postpone the election of Presidency until the end of the referendum upon the Lisbon Treaty in Ireland.

        Lack of both leadership and common decision making of EU disadvantages the Union against its internal subjects, too. Multinational structure of EU make their activation speed slow and actually make EU less effective in international arena. Diplomats comment this situation that the current approach of EU causes to send negative signals to USA, The People’ s Republic of China and other G-20 countries. During the G-20 Summit held on September 2009, the subjects of economic recession and financial crisis were revived and it is expected that EU will be so close to lose its authority in the world day by day, if it is not .

        Current situation of EU will force them to elect their “superpowered” foreign policy representatives. Another disadvantage of the Union for the future is that England has not been still included by Schengen aggreement.

        Significance and power of EU will be comprehended soon in mean of economic wealth, armament, culturel effect and attractive life style. EU has all above mentioned criterias at various levels. Consequently, it is wondered that will EU be able to make a progress on these criterias while has been focusing on its economic and financial structure?   

        I would like to thank this Organization of Vienna Economic Forum again for hosting us here in Vienna.