I would like to give my personal views. For sure the economic figures you mentioned and that M. Mac Donald reminded us of, explain why the European Union and South Korea would like to improve their relationship. From the European point of view, it is however more than that. For Europeans, I feel that these two agreements really are a message of confidence and friendship sent to South Korea. European businesses are more and more involved in the emerging Asian market. However, few countries in Asia share the same values as Europe. We believe, especially in France but generally in the whole European Union, that we could not have a successful economy without the respect for human rights and the rule of law.
I also want to add that in Europe, we are very sensitive to and aware of what would represent the reunification of the Korean peninsula. We witnessed, as you know, the German reunification, but also the reunification of the whole continent; this was a hot topic for the European Union for a long time. For Europe as a result, it is a message of confidence that we want to send to South Korea and a proof of the European political will to cooperate more and develop a sustainable and lasting partnership in many fields – cultural, political, financial, economical, but also regarding the G20 and global issues. We are waiting for the expression of common views on these global issues.
Thirdly, I believe that from the European point of view, these two agreements, for example the FTA, are also to be seen as gestures of openness in difficult times. Ambassador Mac Donald could say better than me that the EU has been, from the beginning, committed to free trade and that it intends to remain so and continue to promote free movement of goods, capital and people. We want to oppose protectionism in the world trade and trade restrictions in general. In these difficult times, there is a risk that some countries in the world, including in Europe, could find that protectionism and new barriers are necessary. This is a reaction that we want to avoid and we are strongly committed to fight it. At the time being, the European Union is facing new challenges with the Greek Crisis, the economic situation, the low growth rate, the difficulties which may arise with the implementation of the new Lisbon Treaty and the need for a successful structural reform of our models and our economies.
In order to better understand the challenges faced by the EU, we have to remember that the EU is not a state. We have complex mechanisms and procedures, which are made even more complex by the language issue and the translation system. We have to respect the national sovereignty and national identities, while at the same time promoting the common European interest. The European system is characterized by a mix of, on the one hand, powers that were transferred to the supranational institutions and, on the other hand, powers that are shared between the institutions and the national governments. Europeans also face the need to get popular support and to respect the legitimacy principle. I have no doubt about our economic strength but I know that, by contrast, the EU is weakened by political issues. As you mentioned before, this particular character of the Union could have some negative aspects.
I really think that the French version of the FTA will be ready very soon. In fact, I remember that General de Gaulle had the opportunity to establish French as the only official language of the European Union in 1966. The German had agreed and I regret that he did not seize this opportunity to make French, a beautiful language that is loved everywhere, the EU’s single language.
The question of translation is also important when the EU tries to deal with the crisis and the challenges of the world economy. To give you an image, the EU is rather a tanker than a speedboat. We take a long time to decide as we have specific procedures which aim to ensure the respect of identities and rules; however, we keep improving. At the end of the day, when we make decisions at the European level, you can be sure that they will not be put into question soon, especially because of the translation issue. It is the same for our financial situation. Three days ago, the European finance ministers met and decided, for the first time, to establish a system of monitoring of national budgets. I don’t know if you realize what it means. It means that the tax payers will have to accept that the ministers of the Euro zone can express their opinion and give advice and recommendations to the national government before the budget is passed in Parliament.
There are mainly two ways of functioning in the EU. First, there is the way set by the Founding Fathers, Robert Schuman and Jean Monnet. It would allow us to anticipate what Europe needs and to move progressively and naturally towards more integration. For me, it is the best way. The second option is European integration as an answer to circumstances and constraints. In other words, when we face a crisis, we overcome it by implementing new common policies and rules. This is exactly the situation we are experiencing right now.
The EU has public deficit and public debt problems, but if we compare its situation with that of the United States or Japan, we can safely say that we are in pretty good shape. In the United States, the private debt is much more significant than in Europe; the Japanese public debt represents more than 225 % of the GDP. We all have debt and deficit problems and we all must overcome them. We need to deal with them without, however, hindering the economic growth.
I know that sometimes, for French people as well as for our partners abroad, it is difficult to understand how the EU works and functions. I would say that Europe is a UIO, (not a UFO), an unidentified international object. It is an unprecedented project and we are making our own way; we are inventing a very complicated government system which is, however, very successful in particular fields. We are the first world economy for example, and we have succeeded in establishing stability, peace and prosperity on a continent where it had proved impossible to do so for one thousand years.
Right now, the EU wants to be part of the world and to play a role on the internaional scene. It is the reason why these two agreements are a gesture and a message directed to South Korea as this country will be in charge of the organization of the G20, just before France. President Nicolas Sarkozy is looking forward to this opportunity to send his message to the world: we need more transparency in the financial system and we count on South Korea to try to take new steps towards this goal. The EU is committed to this objective of increased transparency. We want stronger rules to regulate the activities of non-state actors on the one hand, and better control of public and private debts on the other. We want to fight against imbalances between countries which have an economic surplus such as China and countries which are struggling with high deficits, mainly America. We have to fight these imbalances because they could be the cause of a new crisis in the future. We need better and stronger international organisations; the G20 as you know is a French idea. In November, you can be sure that the members of the EU will strongly support South Korea in its attempt to find a solution to the problems we are facing together today.
Thank you
