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Until it is gone


People tend not to appreciate what they have until it is gone. And when it happens, returning to square one is not an option. All that is left is hope for better days to come. The world at large is now torn between a damage-limitation exercise hope for the future. European core values of openness, unity and solidarity are being questioned by ignorance, petty interests and the rise of economic nationalism. Paradoxically, the financial crisis seems to be the only factor of openness nowadays. It is disrespectful of political and economic boundaries and keeps on reaping its harvest across the time zones. A new phenomenon of psycho-bubble is growing stronger by the day. Is this the kind of change we would like to believe in?

Maria Sadowska*


Tuesday 17 February 2009, by Emanuele G. - 417 letture

Exceptional circumstances require exceptional measures to be applied. This naturally entails a necessity to switch to a different operational mode which would establish a fair balance between immediate strain and future growth. It is widely acknowledged that the worst economic conditions can become a golden opportunity. It offers a unique moment to pursue efficient restructuring processes, explore ways to grow, refresh brand strategies or take a critical look at leadership. In multinational companies of global reach a special focus is being put on core values as the backbone of the organisational structure and culture. The customer role as the king or the boss is being equally exposed. This is not about a quest for a universal panacea that would heal the world. No two organisations nor their conditions are the same. But certain rules remain true for all.

As an international organisation, the EU is one of a kind. It has been a political project with economic foundations which have turned the impossible into possible a long time ago. It pursued its strategy with a re-sounding success. It took us 60 years to take the notion of prosperity and piece for granted. Today, the EU safe haven is at an existential risk. Common EU action is chaotic, impulsive and short-lived, leadership is being abandoned in favour of individual interest. Ignorance and sarcasm are winning the upper hand. Emotions and panic dominate over pragmatic reasoning. Global action which has been remarkable after the fall of Lehman Brothers seems to be evaporating. The European Commission is hardly visible, the Czech Presidency is being incessantly mocked and distrusted and leaders are more and more entangled in political squabbles. There is no one capable of putting the house in order.

This state of affairs is unacceptable. It is much easier to destroy bridges than build new ones. It is also much painless to express one’s opinion than deliver on action. But the way we face the crisis today, will be reflected in the rules of the game of tomorrow. The fact that the crisis offers a way to turn threats into opportunities is not another hype. It is true and tangible but to turn real it requires a number of prerequisites to be respected.

The first one refers to the operational excellence which turns to be a key strength during a downturn. Leaders must be able to make the best decision rapidly and act on them with commitment and determination. Shared vow and transparent lead are the only way to manage the Union through change. There is little leadership at the top at the moment. The deadlock over the Treaty of Lisbon cannot serve as an alibi for inaction. The European Commission should consider to switch to a crisis management mode and pursue with decisions leveraging on the continuity of governance in hard times. There is a number of scenarios projected in terms of shape and format of the next Commission. The nomination of the next President of the European Commission should be advanced to the March European Council. If indeed up to 7 members of the current Commission stand as candidates for the European Parliament, the power of the institution will be undermined even further.

Secondly, managing through the storm requires efficient communication. It applies to both external and internal dimension. A spectre of potential spread of panic can trigger an unmanageable scenario. We tend to forget that bad times can unveil the worst spirits of the human nature. Putting people’s emotions on hold is of utmost importance. Societies are daily overloaded with news heralding gloomy perspectives and yet worse outlooks. This in turn triggers fear, uncertainty and rage. People get on the streets and ask for their rights. Politicians cushion these reactions with national means and pave the way for circumventing the EU in the process. One by one, leaders deliver on similar tools in their own backyards. The spiral of protectionism is growing. The “Buy America” provision has sent a dangerous signal from the superpower which has been supposed to lead the world to rise again. In this context the EU has a unique chance to refresh its brand strategy based on soft power and send the opposite message to the world - one of openness and freedom as the cornerstones of the new architecture of global economy and finance.

Last but not least is the stance of and towards the CEE region which has proven to be more vulnerable than its Western counterpart. The crisis should not be considered as an opportunity to ask for exceptional treatment or pity. It is a unique chance for the new member states to escape the post-communist nostalgia and act as a mature partner who stands to respect the Community principles of Single Market and make the 5th freedom of knowledge come true. A capability to deliver on the latter and restore the economies through innovation would guarantee a continuity of the catching – up process and filling the gap in structural reforms. If we fail to stand up to this task, a two-speed Europe will soon be on the rise. The stance of President Sarkozy towards the Czech Presidency is an offence. On the other hand, uncertain about their internal stability, the Czechs themselves project little hope for efficient management of the European Union. They should at least focus their efforts to deliver on their motto of Europe without barriers. With this in mind they could not have prayed for better times.

* The author is Head of the Europe in the World Programme at demosEUROPA – Centre for European Strategy.

For further information:

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