With all eyes focused on the European elections, it is sometimes easy for the policymakers in Brussels to forget that the rest of the world continues moving forward with limited regard for the largest multi-national election in the world. Of course the positions of Juncker or Schulz on financial markets are very interesting, but if neither of them become Commission President it is all rather academic.
Japanese Premier in Brussels
Beyond Europe the rest of the world continues as normal and this week the visit of the Japanese Premier, Shinzo Abe, to Brussels, has reminded Europeans that two major free trade agreements (FTAs) are currently being negotiated. These could unlock decades of trade conflicts both across the Atlantic and with the Japanese. It seems that Abe’s visit has done enough to persuade the European nations to continue the FTA negotiations with Japan, and aim to complete what would be a tremendously beneficial economic agreement before the end of 2015.
TTIP boost
The Transatlantic Trade and Investment Partnership (TTIP), essentially an FTA with the US, has also received a boost in the last week, with Chancellor Merkel confirming that she wants a quick resolution to the negotiations. This is good news for those who wish to see a more cohesive and united Europe and America. The TTIP would bring the US and EU closer together than ever before, while considerably benefitting both publics through increased jobs and lower consumer prices. The challenges in getting an agreement between the EU and US should not be underestimated, and negotiations over many sectors are surely going to be tortuous.
At the same time the geopolitical situation around the Ukraine could drive the EU and US to quicker compromises. The rise of an expansionist Russia deeply concerns both Europeans and Americans, and the dependence of Europe for its energy needs on Russian hydrocarbons has once again exposed Europe’s Achilles heel when dealing with its Eastern neighbour. The TTIP could be used to unlock energy exports from the US and allow Europe to re-balance this often tricky relationship. If this were to happen, those commentators who have suggested that no-one has done more than President Putin to improve relations between European and America would indeed be proved right!
All eyes on the Elections
Of course, we cannot forget the European elections when we think of the FTA negotiations, as the new European Parliament will decide whether or not to approve the negotiated agreements. Given that the latest polls suggest a relatively motley crew of new MEPs with nationalistic, communistic and Eurosceptic attitudes will be returned, there may well be some cause for concern. It is always an irony that the European public insist on sending representatives to Brussels that they would never dream of having at home, and then complain about Brussels policy making! Irrespective of the assorted political jokers we are likely to see, if the serious politicians stick to their guns we ought to see two valuable FTAs signed before the end of the next Legislature. This will be a good outcome for the citizens of Europe, the US and Japan.