EU faces tough future unless it changes - report

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The European Union is at a critical point in its existence and will struggle for influence in 20 years' time unless it finds unity and firm leadership, a group of elder statesman said in a report issued on Saturday.The 35-page report by the Reflection Group, a body of 12 political and business leaders who in December 2007 were asked to analyse the challenges likely to face the EU in 2030, concluded that the outlook for the bloc was not reassuring."Europe is currently at a turning point in its history," the report, called Project Europe 2030, said."We will only overcome the challenges which lie ahead if all of us -- politicians, citizens, employers and employees -- are able to pull together around a new common purpose defined by the needs of the current age."Focusing on the impact of the financial and economic crisis, which struck shortly after the report was commissioned, the group said Europe's two-tier structure, with 16 of the bloc's 27 members sharing the euro currency and the remainder operating on different cycles, made closer economic management essential."Strengthening economic governance in the EU is urgently needed if we are to avoid the asymmetric shocks which derive from the co-existence of our monetary union and single market with divergent economic policies," it said."The origins of the crisis had little to do with the euro and the stability and growth pact, but these mechanisms have not been sufficient to ensure economic convergence during the crisis."The Reflection Group, chaired by former Spanish Prime Minister Felipe Gonzalez, recommended a series of measures the EU should take to strengthen its leadership and improve its economic influence including:* Reforming the functioning and supervision of its financial institutions* Overhauling its labour markets and pensions policies* Drawing up a common energy strategy with safe nuclear energy on the agenda* Lead the global fight against climate change* Consider the introduction of an EU-wide carbon tax and strengthen the single market, including tax coordination* Increase the number of women at work, invest in research and development and adopt more open immigration policies.The report also called for the EU to show clearer leadership rather than allowing a range of voices -- the president of the European Commission, EU heads of state, the president of the EU Council, the president of the European Parliament -- to speak on the EU's direction."Above all, the situation calls for strong political leadership, a form of leadership marked by the capacity to sustain an honest and fruitful dialogue with citizens and to govern in partnership," it concluded."Ensuring the support of our citizens will be vital, not only for the union to withstand the social and economic impact of the crisis but also for it to undertake the structural reforms needed if Europe is to emerge stronger in the future."
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