Europe’s Strength Rests on Openness and Reliable Partnerships

In her State of the Union address on Wednesday, the European Commission’s president Ursula von der Leyen proposed bringing Canada closer to the EU as an associate member. ZEW-President Professor Achim Wambach, PhD comments:

“In her speech, Ursula von der Leyen rightly recognises that, in a geopolitically uncertain world, Europe needs to diversify its economic relations while at the same time strengthening its competitiveness. The proposal to establish closer ties between Canada and the European Union and to expand cooperation on critical raw materials, energy, defence and future technologies points in the right direction. Canada is a country that offers opportunities for Europe to reduce critical dependencies when it comes to raw materials and energy. Europe’s strength lies in openness and reliable partnerships.

However, it is also true that CETA, a far-reaching EU-Canada trade agreement, has still not been ratified by all EU Member States. New institutional arrangements such as an associate membership should therefore be measured against whether they actually help to remove trade barriers, facilitate investment and provide businesses with access to larger markets. At the same time, Europe should combine this openness to the outside world with a further dismantling of trade barriers within the EU’s internal market.”