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European Elections: The EU's Largest Work Sites

The European Union is focused on the upcoming elections, yet the subsequent period poses significant challenges in areas such as defense, asylum, and climate protection.

So has Europe missed the boat in terms of economic policy, and if so, why?
So has Europe missed the boat in terms of economic policy, and if so, why?

Voting Processes - European Elections: The EU's Largest Work Sites

In the upcoming days, approximately 360 million citizens of the European Union (EU) will be responsible for choosing the makeup of the next European Parliament. A plethora of issues that need addressing have already been determined, including:

  1. Defense: The start of Russia's aggression war in Ukraine marked a turning point for the EU. Most high-ranking politicians now agree that the EU, a monumental peace project, can only maintain security if it's capable of defending itself with military prowess when necessary. However, there's still no consensus on how to rectify the existing deficiencies in the defense sector. Germany primarily centers its efforts on NATO ventures, while France aims to stimulate the European arms industry using EU funds and consequently achieving more autonomy from the United States.
  2. EU Expansion: Russia's invasion of Ukraine has also influenced the idea of expanding the EU. Many politicians believe that an enlarged EU should serve as a geopolitical response to Russia's aggression. Additionally, there's concern that nations without membership prospects could align themselves with rivals such as China or Russia. This is particularly applicable to the states in the Western Balkans, which have longed for progress towards EU membership for years. For new candidates like Ukraine and Moldova, this is also about proving to their citizens that fighting for freedom and democracy is worth it.
  3. Climate Protection: One of the most extensive initiatives from the EU Commission under President Ursula von der Leyen has been the Green Deal – a collection of measures and laws designed to significantly reduce greenhouse gas emissions. This package covers various sectors such as energy, transport, industry or agriculture. One objective involves renewable energy accounting for about 42.5 percent of the EU's total energy consumption by 2030, creating energy independence from Russia.
  4. Economic Policy: The EU's priority is now fostering the competitiveness of Europe. Concerns stem from competition with China and the United States. The EU's trade deficit with China was almost 400 billion euros recently. In a report commissioned by EU states and the EU Commission, it was mentioned, "While the GDP per capita in the US increased by 58% between 1993 and 2022, Europe's increase was under 30%."
  5. Migration and Asylum Law: Although the contentious asylum reform was settled in 2024, the issue of migration is likely to persist within the EU after the election. EU countries, including German municipalities, are voicing concerns about overburdened asylum systems. Migrating the external borders to uniform procedures would allow for determining unfounded asylum applications and deporting refugees directly from the border. Countries like Italy, Greece, and Spain, where many refugees arrive, would be primarily affected by this.
  6. Energy Prices: The EU needs to enforce stricter regulations to mitigate high energy prices. Balancing economic growth and ambitious climate policies are current challenges.
  7. Digitalization and Artificial Intelligence: The future of Europe hinges on digitalization and artificial intelligence; the EU needs strong, proactive policies to create an environment that promotes industry competitiveness, job creation, and digital skills development.
  8. Brexit: The UK's exit from the EU has left the bloc with numerous lingering issues, including the Irish border, security, and trade. EU nations have had to adapt to Brexit's legal complexities and trade relationships. The UK's departure from the single market and customs union presents new challenges for the EU to contend with.
  9. Covid-19: The health crisis remains at the forefront of the EU's concern. The EU has to address the long-term effects of the pandemic on various aspects of the economy, from healthcare to financial markets, and how these issues might impact the level of policy coordination among EU member states.
  10. Budget Battles: Appropriately balancing the EU's multiannual financial framework, its seven-year budget, is crucial for serving citizens' needs – from infrastructure development to funding research and innovation. The EU will need to ensure its 2021-2027 budget is flexible enough to address emerging challenges like climate change, migration, and cybersecurity threats while investing in growth.

To alleviate the burden on countries that receive a large number of refugees, like Italy, Greece, and Spain, a "solidarity mechanism" is being proposed. Each year, at least 30,000 refugees from these countries are expected to be reallocated to other EU member states. If a country refuses to accept refugees, it must offer aid in some other way, whether that's monetary or otherwise. It's uncertain whether all countries will eventually take part in this scheme – Poland and Hungary have already expressed their desire to bypass this method.

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