Warsaw European Conversation

What direction is the EU heading towards

Takeaway 2023-05-31
The participants of the panel entitled "Europe's Turning Point. How the war has changed the EU" acknowledged that enlarging the EU to include Ukraine will be a key challenge for Brussels after the 2024 elections.

Takeaway

The panellists talked about the EU's successes... Head of the Warsaw branch of the European Council on Foreign Relations Piotr Buras, who moderated the debate, asked participants about the EU's greatest achievements and failures with regard to the war in Ukraine. The interviewees pointed to the unprecedented speed and efficiency with which EurCom and its member states implemented successive sanctions packages. Deputy head of the Estonian Centre for Defence and Security Kristi Raik said that the Russian invasion of Ukraine had become a wake-up call for the bloc, which was now more aware of geopolitical threats. Europe was able to use the tools at its disposal to provide Ukraine with financial and humanitarian assistance in an efficient manner, she added.

...and its failures. German Ambassador Thomas Bagger saw Europe's inability to maintain peace as its greatest failure. Managing Director for Europe at the Eurasia Group Mujtaba Rahman emphasised the slowness with which the EU realised its own shortcomings in terms of armaments and the need for, e.g. joint arms purchases. According to the panellists, the EU wasted the first year of the war - it should have devoted it to coordinating armaments and boosting production capacity. The problems with meeting Ukraine's ammunition needs show that in terms of "hard power" Europe failed to rise to the challenge. This in turn shows that the United States continues to provide the EU with, as the German ambassador put it, "existential guarantees".

To expand, the EU must reform itself. Putin has redrawn the dividing lines in Europe - in this configuration, Ukraine is "on our side", the German ambassador stressed. Consequently, the EU's expansion to include this country is part of the Zeitenwende (German for "turning point") - a fundamental shift in German policy caused by the war, which Bagger also called a "mental change". The bloc must, however, be ready for this change, something that should become a priority for the new EurCom elected after the European elections in 2024. In this context, the panellists discussed moving away from unanimity in, for instance, foreign policy. However, Raik pointed out that this does not necessarily mean majority voting but, for instance, unanimity minus one or two countries, which would prevent abuse of the veto. The need to rethink the distribution of EU funds was also pointed out (as enlargement will mean less money for individual members).

It is necessary to decide on an approach to China. For, as Bagger pointed out, although the discussion in Warsaw now focuses on Russia, it is China that poses a growing threat to the EU. The panellists made reference to the debate on reducing dependence on China in strategic sectors, which is currently underway in the EU (its new China strategy is due to be published in June). Although the bloc is currently re-evaluating its stance on China, there is still no consensus on what this should be. A new concept promoted by EurCom head Ursula von der Leyen is the de-risking of China, which is a softer version of the strategy of "decoupling" the US from China.

Building the EU's strategic autonomy is not easy. Talking about such autonomy at a time when Europe does not yet have the capacity to defend itself is not credible for countries neighbouring Russia, Kristi Raik said. At the same time, she pointed out that the EU must prepare for building its own capabilities in the future and for a possible weakening of the US presence in Europe. Rahmann noted that the catalysts for reflection on building the EU's independence included the isolationist presidency of Donald Trump and the pandemic which highlighted the supply chains' dependence on China. Differing foreign policy visions that hinder the development of a common EU strategy will similarly do nothing to help the EU establish itself as a geopolitical actor.

The EU's newer members have a chance to take the lead. Rahman drew attention to the vacuum in EU leadership following the departure of Chancellor Angela Merkel and the concomitant increase in the role of EurCom as a result of a series of crises (the pandemic, war). In his view, Chancellor Olaf Scholz has so far failed to grow into a leadership role in the bloc while French President Emmanuel Macron's domestic position has been severely weakened after elections that deprived his camp of an absolute majority in the National Assembly. Bagger pointed out that, although the war in Ukraine has shifted the EU's attention to the east, this has not so far translated into a real shift of the EU's centre of power. Raik, meanwhile, pointed out that the strengthening of the Central and Eastern European countries is hampered by their lack of a unified political strategy and by problems with the rule of law in Poland and Hungary.

* The Warsaw European Conversation conference was organised by Polityka Insight and the European Council on Foreign Relations. The event's partners were Orange, Deloitte, the European Climate Foundation, McDonald's, Nexity, the Polish Association of Developers, Veolia, Visa and Żabka Group.

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Magdalena Cedro
Fmr. Senior Analyst for European Affairs
Magdalena Cedro
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Maria Wiśniewska
fmr. Analyst for European Affairs
Maria Wiśniewska
PI Alert
10:00
28.06.2024

EU summit: Member States launch discussion on financing joint defence initiatives

State of play

Leaders approved appointments to top posts. At the EU summit that ended on Thursday night, they nominated Ursula von der Leyen for a second term as head of EurCom, former Portuguese Prime Minister António Costa as head of EurCou and Estonian Prime Minister Kaja Kallas as head of EU diplomacy. Italian Prime Minister Giorgia Meloni abstained from voting for von der Leyen and voted against Costa and Kallas. This means that Meloni is preparing for tough negotiations and may demand a high political price in return for his party's support for von der Leyen in her approval in the EurParl. Prime Minister Viktor Orbán voted against von der Leyen and abstained on Kallas.

They adopted the Union's strategic agenda for 2024-2029. Over the next five years, the Union's goals include a successful digital and green transformation by "pragmatically" pursuing the path to climate neutrality by 2050. Another objective is to strengthen the EU's security and defence capabilities.

Von der Leyen spoke of EUR 500 billion for defence over a decade. This was the EurCom estimate of needed EU investment presented by its head at the EurCou meeting. Poland and France were among the countries that expected the EurCom to present possible options for financing defence investments before the summit, such as EU financing of common expenditure from a common borrowing. This idea was strongly opposed by Germany and the Netherlands, among others. In the end, von der Leyen decided to postpone the debate until after the constitution of the new EurCom, i.e. in the autumn. And the summit - after von der Leyen's oral presentation - only launched a preliminary debate on possible joint financing of defence projects.

Poland has submitted two defence projects. These might be co-financed by EU funds. On the eve of the summit, Poland and Greece presented in writing a detailed concept for an air defence system for the Union (Shield and Spear), which Prime Ministers Donald Tusk and Kyriakos Mitostakis had put forward - in a more general form - in May. In addition, Poland, Lithuania, Latvia and Estonia presented the idea of jointly strengthening the defence infrastructure along the EU's borders with Russia and Belarus. Poland is pushing for the EU to go significantly beyond its current plans to support the defence industry with EU funds and agree to spend money on defence projects similar to the two proposals. But EU states are far from a consensus on the issue.

Zelensky signed a security agreement with the Union. The document, signed by President Volodymyr Zelensky in Brussels, commits all member states and the EU as a whole to "help Ukraine defend itself, resist efforts to destabilise it and deter future acts of aggression". The document recalls the EUR 5 billion the EU intends to allocate for military aid and training in 2024 (in addition to bilateral aid from EU countries to Kyiv). It says that "further comparable annual increases could be envisaged until 2027, based on Ukrainian needs" i.e. it could amount to up to EUR 20 billion. Ukraine's agreement with the EU comes on top of the bilateral security "guarantees" Ukraine has already signed with a dozen countries (including the US, UK, Germany, France, Italy). As Prime Minister Donald Tusk confirmed in Brussels, talks are also underway between Ukraine and Poland on the text of mutual commitments on security issues.

PI Alert
21:00
09.06.2024

KO wins elections to the European Parliament

KO received 38.2 per cent of the vote and PiS 33.9 per cent, according to an exit poll by IPSOS. Konfederacja came in third with 11.9 per cent, followed by Trzecia Droga with 8.2 per cent, Lewica with 6.6 per cent, Bezpartyjni Samorządowcy with 0.8 per cent and Polexit with 0.3 per cent. According to the exit poll, KO gained 21 seats, PiS 19, Konfederacja 6, Trzecia Droga 4 and Lewica gained 3. The turnout was 39.7 per cent.

According to the European Parliament's first projection, the centre-right European People's Party (EPP), which includes, among others, PO and PSL, will remain the largest force with 181 MEPs in the 720-seat Parliament. The centre-left Socialists and Democrats (S&D), whose members include the Polish Lewica, should have 135 seats, whereas the liberal Renew Europe club (including Polska 2050) will have 82 seats. This gives a total of 398 seats to the coalition of these three centrist factions (EPP, S&D and Renew Europe) on which the European Commission under Ursula von der Leyen has relied on so far. The Green faction wins 53 seats according to the same projection, the European Conservatives and Reformists faction (including PiS) 71 seats and the radical right-wing Identity and Democracy 62 seats.

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