Helle Thorning-Schmidt: We need a more responsible Europe

The first priority of the Danish Presidency of the Council of the EU in the first half of 2012 is to ensure a responsible European economy so that Europe can overcome the crisis and get back on track, says Helle Thorning-Schmidt, Prime Minister of Denmark, in an exclusive interview for this website.

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Helle Thorning-Schmidt, Prime Minister of Denmark
© The Danish Prime Minister's Office

Prime Minister, what will be the priorities of, what is already the 7th Danish Presidency of the EU Council in this period which is critical for the European construction?

The Danish Presidency has four main priorities: firstly, we need a more responsible Europe. We must ensure a responsible European economy so that Europe can overcome the crisis and get back on track. The economic rules must be effectively implemented so that we can restore the financial markets’ trust in European economies. Secondly, we need a more dynamic Europe. We need to restore European growth. Consolidation cannot stand alone if we want to create new jobs in Europe. This priority is also linked to our third priority: a green Europe. Through new initiatives in areas such as energy efficiency and renewable energy we can create green growth in Europe. Finally, we need a safe Europe. In a globalised world, a joint European effort is needed to ensure the safety and freedom of our citizens.

Denmark is taking on the Presidency in a time of crisis and Europe is facing major challenges. The crisis will influence everything we do the next six months and further on. But that only underlines the importance of ensuring concrete results if we wish to bring Europe back on track. I believe these four priorities are essential in creating the foundation for future growth and jobs.

How could the Danish Presidency efficiently contribute to the efforts to tackle the sovereign debt crisis in the euro area and to improve the economic governance when you have an opt-out from the euro?

It is important to realise that the debt crisis cannot be isolated to the euro area. All EU member states need to conduct a sound economic policy combining the necessary consolidation efforts with the equally necessary reforms.

As a non-euro country, Denmark both can and will contribute to this important agenda. As presidency, Denmark will take full advantage of the strengthened rules for economic governance enshrined in the so-called six-pack upon which all member states have agreed. We will use the European Semester as a framework to contribute to a process where we ensure that all member states conduct a responsible economic policy to the benefit of the individual member states and the EU at large.

The decisions of the European Council on 9 December to strengthen fiscal discipline and ensure economic stability will be implemented in the coming months. The aim of these decisions is in line with the goal of the Danish Presidency to ensure a more responsible Europe.

How can Europe combine the austerity measures with stimulation of economic growth in the EU?

Consolidation cannot – and should not – be the only tool used if we are to bring Europe back on track. We need to stand on two legs combining consolidation with economic growth. The EU has already defined ambitious goals in the EU 2020 growth strategy and member states have defined national targets. The annual growth survey has also defined five priorities which are now to form part of the European Semester.

So in essence, we have defined what to do; now we need to put action behind the words. As Presidency, Denmark will do its utmost to take full advantage of the Single Market which still has untapped potential. In line with the European Council conclusions, we will strive to fast-track those initiatives with the highest growth potential. We will also promote an ambitious green agenda where the EU takes full advantage of its leading position when it comes to energy and climate to create green growth.

Austerity and growth are not opposites. On the contrary. A responsible economic policy is a necessity if we are to have growth, and growth is a necessity if we are to exit the crisis.

On which areas would the Danish Presidency like to focus the EU budget for the period 2014 - 2020?

The negotiations on the EU budget for 2014-2020 will be a major dossier during the Danish Presidency, and we will do our utmost to develop a basis for the final negotiations to take place in the second half of 2012. The EU budget is a key tool to promote European policies.  As Presidency we will listen carefully to member states’ interests in order to ensure a budget that provides real added value to the European citizens. In the current situation, I believe there is a particular interest in ensuring that the EU budget to the largest possible extent underpins growth and employment.

What make-over does the Single Market need to continue being successful in the next 20 years?

We need to modernise the Single Market so that it can continue to facilitate trade and growth across the EU. We fully support the Commission’s Single Market Act, which will be an important priority during our Presidency. The Single Market legislation needs to be modernised and simplified in order to keep it up-to-date in the global competition. This will make life easier for businesses and improve access to public markets. We should also ensure access to venture capital, which is especially important for small and medium sized enterprises. And we should move forward on the European patent reform to stimulate innovation. Finally, there is great potential in enhancing the digital single market so that consumers are confident to trade across borders using the internet, and businesses are encouraged to develop new digital goods and services.

This make-over is needed for the Single Market to be successful in the next 20 years. It is like a 20 year old car - sometimes it needs a service.

How do you intend to persuade other member states that even at a time of crisis, Europe should promote the green agenda and growth and should increase its investments in green technologies, renewable energy and energy efficiency?

I would say, we have no choice. A greener and more sustainable Europe might be seen by some as an unproductive Nordic preoccupation. I disagree. Europe has an unique opportunity in the coming months to embark on the path of competitive green growth. In this respect, the Danish Presidency will focus on our common goal of a 20% increase in energy efficiency by 2020, by pushing forward the negotiations on the important energy efficiency directive. This will send a clear signal to the European markets that new and innovative solutions are in demand. We will also build on the Commission communications on a Low Carbon Economy and the Energy Roadmap to provide the EU with the right long-term strategy in the area of energy and climate. We know what we want to do in 2050, but we need a clear strategy on how to get there. If we set the right course now, by creating healthy incentives and a strong foundation for a European green industry to flourish, we will have ensured growth, jobs and a clean environment for our citizens and their children.

What initiatives will the Danish Presidency launch in order to achieve a more secure Europe, both externally and internally?

Denmark believes we need a safe Europe. A Europe in which each citizen can freely exercise one of the greatest achievements of the European Union: freedom of movement. But we must also deal effectively with the challenges created by free movement. In this respect, stronger cooperation between the member states and their authorities is needed. For instance, during the Danish Presidency, we will push forward the negotiations on the European Investigation Order. This instrument will be an effective means to ease police work on cross border crime. There is no reason why we should be less effective in tackling crime just because an investigation spans over different member states. We will also work to further develop the Schengen Area with new instruments to evaluate and deal with difficult situations, such as an extreme pressure on the external borders which threatens the functioning of the entire system. After all, it should be our guiding goal to secure those very rights and freedoms that we have successfully created for our citizens.