With 25 countries already in the union and more expected to
join, the European Union has the potential to be the world’s
next superpower.
Many people in the United States may not know what the European
Union is or what its goals are, but they better start learning
quickly, said former U.S. ambassador to the European Union Rockwell
Schnabel.
“What we cannot do is put our head in the sand and hope
Europe doesn’t get its act together,” Schnabel
said.
Schnabel spoke at the Korn Convocation Hall in the Anderson
School of Management on Oct. 12.
He is the first speaker in the Anderson School’s
Distinguished Speaker Series.
The EU was established in 1992 after the Treaty of Maastricht
was signed as a way to promote economic cooperation between member
states. It has grown to include 25 members states.
Given Europe’s growing wealth and influence, students may
find the region fresh for entrepreneurial opportunities, Schnabel
said.
Still, before Europe takes the next step in the global
hierarchy, Schnabel said it must first let go of “Old
Europe” economic policies.
Schnabel said there is currently a battle in many European
countries between open-market ideas pushed by the EU and the
state-controlled policies of some governments.
He said if Europe expects to grow, it must embrace an
open-market system in order to remain competitive in the global
economy.
To remain competitive with nations such as China, where the
average textile worker earns 50 cents an hour compared to the $20
an hour a Frenchman makes at the same job, Europeans must be
willing to work longer hours and for less pay. This is something
not many workers are willing to do, Schnabel said.
Although such drastic economic changes may threaten
Europe’s short-term social stability, these changes are
necessary if Europe is to become the next superpower.
“Crisis creates opportunity,” Schnabel said.
As more European nations do away with constricting labor laws
and adopt a more pro-business stance in an effort to join the EU,
Europe’s superpower status will then become reality, Schnabel
said.
Anderson student Tsuyoshi Oyabu echoed Schnabel’s
assertion that the EU represents an influential force in the global
economy, but added that China’s burgeoning economy must not
be overlooked.
Experts believe China is in the process of becoming an economic
juggernaut.
China’s economic growth has averaged 9.5 percent over the
past two decades and the nation is expected to eventually provide
70 percent of the world’s clothing.
Schnabel acknowledged that China should not be overlooked, but
he said at the moment, the EU is better equipped to mirror the
U.S.’s superpower status.
Gail Kligman, director of the Center for European and Eurasian
Studies, said the EU’s spread through Europe will continue to
be an important, yet complicated, issue facing Europe in the
future.
Earlier this month, Turkey began the process of accession into
the EU, a process that will take about 10 years before Turkey is
granted full membership.
Some member-nations of the EU, namely Austria, remain skeptical
of Turkey’s bid to join the EU.
Critics are wary of Turkey’s size, poverty and primarily
Islamic population.