1 00:00:00,640 --> 00:00:02,709 Well, it's a great pleasure, ladies and gentlemen, 2 00:00:02,710 --> 00:00:08,500 to be here to introduce the speaker at what is one of our most prestigious lectures in this college. 3 00:00:09,160 --> 00:00:14,310 We have an annual lecture from the European Studies Centre, which is enormously active anyway. 4 00:00:14,320 --> 00:00:22,280 It's, it's, it's one of the most of all asset centres are active, but the European Studies Centre is particularly active shall we say. 5 00:00:22,280 --> 00:00:26,439 It's, it's always, you always have extremely good seminars and very good speakers. 6 00:00:26,440 --> 00:00:30,640 And I know that tonight is going to be yet another high point in what you do. 7 00:00:31,210 --> 00:00:34,600 And I'm very, very pleased to be able to introduce Professor Offered. 8 00:00:35,350 --> 00:00:42,460 He will be taking questions at the end and what you need to do is attract the attention of the students over there who's got a microphone. 9 00:00:42,850 --> 00:00:47,950 And if you could wait till you get the microphone and if you could introduce yourself, that I think would be nice. 10 00:00:48,400 --> 00:00:51,940 And so we'll we'll end up the lecture with with some questions. 11 00:00:52,840 --> 00:00:56,830 Professor Ofer is a political scientist and sociologist. 12 00:00:57,490 --> 00:01:04,690 He held the chair of as professor of political science at Humboldt University in Berlin and earned his 13 00:01:04,690 --> 00:01:11,140 degree at the University of Frankfurt and then his have a habilitation at the University of Constance. 14 00:01:11,710 --> 00:01:16,900 He is now well, he says he's retired, but it doesn't sound much like a retirement to me at all. 15 00:01:17,830 --> 00:01:26,620 He is now teaching on a part time basis at the Hertz School of Governance School of Public Policy, where he holds a chair of political sociology. 16 00:01:27,370 --> 00:01:33,310 He has held professorships in the course of his long and distinguished career at the universities of Bielefeld and Bremen, 17 00:01:34,030 --> 00:01:41,139 and he has held research, visiting and professorships and taught courses quite literally around the world the United States, 18 00:01:41,140 --> 00:01:45,670 Canada, Australia, Russia, Hungary, Poland, Austria, Italy, Netherlands and a very, 19 00:01:45,670 --> 00:01:51,100 very long list of places where he has contributed his knowledge and his scholarship. 20 00:01:52,090 --> 00:02:01,000 His fields of research include democratic theory, transition studies, European Union integration and welfare, state and labour market studies. 21 00:02:01,840 --> 00:02:07,900 He has a long list of publications which, if I were to read them all out, would not leave enough time for him to lecture. 22 00:02:08,500 --> 00:02:14,860 But his most recent work includes a book Modernity in the State, East and West, 23 00:02:15,370 --> 00:02:20,799 Institutional Design in post-Communist Societies, and most recently in 2006, 24 00:02:20,800 --> 00:02:30,400 a book with the marvellous title, Reflections on America, Tocqueville, Faber and Adorno in the United States, a very interesting trio indeed. 25 00:02:31,210 --> 00:02:34,420 He is talking tonight on returning to Europe. 26 00:02:34,660 --> 00:02:38,950 Divides and challenges in the enlarged in the enlarged European Union. 27 00:02:39,280 --> 00:02:43,120 And like you all, I'm very much looking forward to it. Please join me in welcoming you, Professor, often. 28 00:02:48,530 --> 00:03:00,290 So thank you very much for your kind words of introduction, and thank you for inviting me to this lecture, which I had heard before. 29 00:03:00,350 --> 00:03:13,100 I'm very honoured to be invited as Speaker, but I want to do is to look at the present state of the European Union and in 30 00:03:13,100 --> 00:03:21,620 particular three of its contracted construction sites that are of particular interest. 31 00:03:22,880 --> 00:03:29,480 And I will spend an even amount of time on these three construction sites. 32 00:03:31,340 --> 00:03:42,890 The first is the question the divide, the conflict, the tension, the cleavage between member states and the union, the relationship. 33 00:03:47,540 --> 00:03:59,930 The second a very briefly, I just mentioned this because it is and the discussion everywhere in Europe is the relationship 34 00:04:00,200 --> 00:04:12,080 between five of the six original member states on the one hand and what is commonly used under the. 35 00:04:13,480 --> 00:04:19,390 Acronym PIGS. That is the. 36 00:04:21,520 --> 00:04:30,630 Five States and the cabinet. Fiscal financial precariousness. 37 00:04:31,560 --> 00:04:35,790 Portugal, Ireland. Italy, Greece and Spain. 38 00:04:36,000 --> 00:04:46,050 Pigs. And thirdly, and most extensively, I'm going to talk about another third divide. 39 00:04:48,050 --> 00:04:54,560 In Europe, and that is the divide that is marked by the former Iron Curtain. 40 00:04:54,860 --> 00:05:09,750 That is the divides, tensions, challenges, conflicts that exist between the EU 15 or the old member states and the EU ten. 41 00:05:10,490 --> 00:05:32,390 That is the new Member States of a past socialist history, leaving out one and a half Mediterranean islands that make up the 27 at the moment. 42 00:05:33,930 --> 00:05:50,990 So the first question that is being us and that I want to briefly discuss is the question of member states. 43 00:05:54,290 --> 00:06:10,580 And the EU, the limitations of democratic accountability at the European level and its consequences for democracy at the national level. 44 00:06:12,890 --> 00:06:23,450 The problem is not primarily that the EU must become democratic, which has happened to an extent through the Lisbon Treaty. 45 00:06:25,250 --> 00:06:32,300 It is that Member States politics must remain democratic and not the democratic. 46 00:06:32,780 --> 00:06:41,360 Process at the member state level should not be pre-empted and distorted by European decision making. 47 00:06:41,870 --> 00:06:48,920 Moreover, major institutional actors at the EU, as many analysts have observed, 48 00:06:49,250 --> 00:06:59,330 that South being one of the most prominent major institutional actors at the EU level, namely the European Central Bank, 49 00:06:59,450 --> 00:07:05,810 the European Court of Justice and the Commission, when it operates as a rule enforcement agency, 50 00:07:06,410 --> 00:07:19,160 have a direct impact upon the citizens of the member states and therefore must be subjected to some kind of institutionalised legitimacy test. 51 00:07:25,930 --> 00:07:36,579 The intensity of institutional interdependence between the national and the European levels of governments is bound to thwarts attempts to 52 00:07:36,580 --> 00:07:44,650 isolate the two levels and to protect the national political system from the effects of the democratic deficiencies at the European level. 53 00:07:46,240 --> 00:07:54,639 That there is, in fact, reason for concern that if the shift of political power from the democratically legitimised national governments to 54 00:07:54,640 --> 00:08:03,070 the EU is not accompanied by some kind of compensation through additional channels of supranational legitimation, 55 00:08:03,520 --> 00:08:10,150 democracy within in nation states will be perceived as the key. 56 00:08:13,990 --> 00:08:20,590 A democracy. I'm not going to discuss democracy except for one distinction that I found useful. 57 00:08:20,590 --> 00:08:24,700 And I hope you won't find too, too primitive or simplistic. 58 00:08:26,320 --> 00:08:33,250 Democracy is a accountability, and accountability applies to two questions. 59 00:08:33,790 --> 00:08:45,400 One is the question how and to what extent rulers are effectively prevented from doing the wrong thing that is, 60 00:08:45,760 --> 00:08:53,140 effective punishment or sanctioning capacity of the ruled over the rulers. 61 00:08:55,750 --> 00:08:59,650 The second is rule as mandated and able. 62 00:09:01,110 --> 00:09:05,480 To do the right thing. And how can they be mandated? 63 00:09:05,880 --> 00:09:21,300 Not violating the limits of rule, but using their power for of purposes that are commonly approved. 64 00:09:21,330 --> 00:09:28,860 A system of rule in which rulers are held perfectly accountable by the rules yet cannot accomplish anything, 65 00:09:29,430 --> 00:09:39,329 is as much a caricature of democracy or an impoverished version as would be a system of rule which 66 00:09:39,330 --> 00:09:44,820 is highly effective in shaping conditions and developments without being accountable to the rules. 67 00:09:45,000 --> 00:09:48,540 So both things must come together. Moreover, 68 00:09:48,750 --> 00:09:54,959 the two aspects of democratic rule hang together as it appears unlikely that the rules will 69 00:09:54,960 --> 00:10:00,840 have good reasons to support a set of rulers whose capacity for significant policymaking, 70 00:10:01,590 --> 00:10:09,870 as opposed to the simple execution of market imperatives and problem solving, has evidently evaporated. 71 00:10:10,560 --> 00:10:16,650 The rules are powerless when the institutional resources to control rulers are absent. 72 00:10:16,770 --> 00:10:23,150 But the rulers themselves can also be powerless and thus do not qualify. 73 00:10:23,190 --> 00:10:31,769 By the second criterion of what a democracy is, when they find themselves incapable of dealing effectively with problems, 74 00:10:31,770 --> 00:10:42,960 of providing public goods or of protecting EU societies from what could be called public bads when this is the case. 75 00:10:43,110 --> 00:10:47,070 The system of rule loses its policymaking capacity. 76 00:10:47,430 --> 00:10:51,540 A democratically constituted political power is idols. 77 00:10:52,230 --> 00:11:00,059 In modern capitalist democracies, the major cause of the incapacitation of rulers is of an economic nature. 78 00:11:00,060 --> 00:11:03,990 Marcus Hold would be policymakers in a bind. 79 00:11:04,410 --> 00:11:13,469 As soon as they adopt an activist approach to the solution of social problems through policymaking, 80 00:11:13,470 --> 00:11:18,390 they will be punished by adverse reactions of economic actors such as investors 81 00:11:19,350 --> 00:11:24,569 and employers on whose activities policymakers depend as their tax base, 82 00:11:24,570 --> 00:11:28,770 as well as their political, as well as their political support. 83 00:11:29,340 --> 00:11:41,370 The present configuration of the euro polity and its largely negative integration is clearly such that it enables 84 00:11:41,820 --> 00:11:50,430 economic actors to make extensive use of this mechanism of punishment and thus to disable the making of public policies. 85 00:11:50,970 --> 00:11:59,130 So. So the question that citizens have of Member States looking at the European Union is 86 00:11:59,280 --> 00:12:07,410 what can the European Union at all do in terms of desirable collective outcomes? 87 00:12:07,440 --> 00:12:15,930 The governing or policymaking or governance capacity is at issue. 88 00:12:17,290 --> 00:12:27,420 The two standard justifications that Europe offers its member states and citizens are the backward looking justification that Member States have, 89 00:12:27,430 --> 00:12:33,640 after all, voluntarily giving up some of their self-identity at the point of joining the union. 90 00:12:34,000 --> 00:12:40,570 And second, the forward looking of functionalist justification in terms of output legitimacy. 91 00:12:41,230 --> 00:12:47,080 As for itself, again, as record as that is claimed on the grounds that general observance of these 92 00:12:47,080 --> 00:12:52,270 constraints and the universal compliance with European regulations will eventually 93 00:12:52,390 --> 00:13:01,690 hopefully turn out for the better in terms of the the prosperity and the assurance 94 00:13:01,690 --> 00:13:07,990 of even burden sharing and the security from negative externalities and so on. 95 00:13:09,540 --> 00:13:29,980 And well, I think the current issues that European policymakers face make these backward looking and forward looking justifications insufficient. 96 00:13:30,970 --> 00:13:36,520 And the question is, what can actually be accomplished at the European level? 97 00:13:36,520 --> 00:13:49,239 And we look at areas in which the many citizens of European member states, as well as political elites, 98 00:13:49,240 --> 00:14:02,110 express a strong hope, strong demands for joint action at the European level, which, however, does not come for us. 99 00:14:02,560 --> 00:14:07,780 Foreign policy is one example. European foreign policy. 100 00:14:08,050 --> 00:14:14,800 Look at the recent events, the context of the MENA, Middle East and North Africa revolution. 101 00:14:15,220 --> 00:14:27,340 What Europe, in spite of its having a foreign minister now is able to say to this and to do with its own means? 102 00:14:27,600 --> 00:14:30,670 This is evidently very limited. 103 00:14:32,020 --> 00:14:48,099 The same applies for of the entire last year the discussion of a common fiscal and economic policy or the economic policy for Europe, 104 00:14:48,100 --> 00:15:01,300 that which would then help to prevent the repetition of the type of crisis that we have been through over the past two and a half years. 105 00:15:02,020 --> 00:15:16,810 Another issue area that Europe has failed to generate policies that are supported or negotiated among 106 00:15:17,470 --> 00:15:26,470 all member states and failed to support is the entire very urgent policy area of migration and asylum. 107 00:15:26,890 --> 00:15:40,330 Again, we have a lot of conflicts here and a ongoing blockade of coordinated, concerted, 108 00:15:40,330 --> 00:15:50,500 harmonised European policies after the very embarrassing experience of the Lisbon agenda of the year 2000. 109 00:15:52,480 --> 00:15:58,150 There is still the need for a coordinated European social and labour market policy, 110 00:15:58,540 --> 00:16:05,110 which supposedly works through means of the method of coordination. 111 00:16:06,610 --> 00:16:23,230 At best, we can speak of a stagnation of these policy areas and the European initiatives and European coordinated coordinating activities, 112 00:16:24,100 --> 00:16:31,479 very limited. Indeed, the same applies to the social inclusion agenda. 113 00:16:31,480 --> 00:16:39,760 Now very high up the agenda rhetorically, nominally, 114 00:16:40,300 --> 00:16:53,260 but mostly the member states are left alone with addressing the growing problem of social exclusion. 115 00:16:53,290 --> 00:17:08,740 So the question is what can be accomplished at the European level and how can the governance and capacity of the European Union be increased? 116 00:17:09,280 --> 00:17:14,950 And if we ask for the reasons for the disappointing. 117 00:17:17,540 --> 00:17:23,210 Evidence that there's very little that can be done at the European level. 118 00:17:24,590 --> 00:17:31,700 We often encounter the argument, well, member states follow their own interests. 119 00:17:32,060 --> 00:17:45,740 The particular is selfish interests rather than joining the common cause of European affairs. 120 00:17:46,190 --> 00:17:48,200 And I want to question that answer. 121 00:17:48,500 --> 00:18:01,420 And I think it is of great was felt that this is of great also theoretical significance for social scientists that you 122 00:18:01,610 --> 00:18:13,760 will find how little you get actually explained in terms of interests because interests are themselves not self-evident. 123 00:18:14,690 --> 00:18:22,070 It is not that one should not follow our interests. By not, I mean it is normally considered to be selfish, to follow your interests. 124 00:18:22,520 --> 00:18:27,410 It is that you cannot, because it is highly ambiguous what your interests are. 125 00:18:27,680 --> 00:18:31,970 Let me develop this briefly with an example. 126 00:18:32,210 --> 00:18:47,240 Suppose you are Germany and suppose the issue are euro bonds and they are now for the interest positions you can take on this issue, 127 00:18:47,600 --> 00:18:50,840 pro or con eurobonds. 128 00:18:51,440 --> 00:19:00,860 And it turns out that it is not clear what the priority should be from a purely interest oriented point of view. 129 00:19:02,000 --> 00:19:07,520 There is amazingly little guidance from considerations of interest. 130 00:19:08,000 --> 00:19:15,470 Let us go through the case from a short term and political perspective. 131 00:19:15,890 --> 00:19:30,260 You can, as a German government, say, well, let's use the opportunity to cater to the resentments that prevail against the pigs. 132 00:19:31,430 --> 00:19:44,570 Teach them a lesson and force discipline and also create among your national constituency the feeling of superiority of some kind, 133 00:19:45,020 --> 00:19:52,679 and that has been pursued, etc. But you could also say a long term political perspective and therefore, 134 00:19:52,680 --> 00:20:01,489 let's say use the opportunity to build EU economic and fiscal policy capacity in 135 00:20:01,490 --> 00:20:08,120 order to prevent the repetition of a crisis such as the one we just went through. 136 00:20:08,570 --> 00:20:18,740 That would then lead to a very open minded willingness to embrace the idea of euro bonds. 137 00:20:19,100 --> 00:20:36,440 You could also take a long term economic perspective by saying make sure that the ability to pay is preserved or for that matter, 138 00:20:36,440 --> 00:20:41,420 restored on the part of future customers of German exports. 139 00:20:42,020 --> 00:20:51,020 And that would also lead to a very open minded attitude towards such a proposal of highly coordinated. 140 00:20:52,390 --> 00:21:05,120 And then you could take the force of a short term economic perspective, namely, put a high priority on austerity, consolidate the budget. 141 00:21:09,530 --> 00:21:15,920 Avoids being a net contributor to European causes. 142 00:21:16,190 --> 00:21:23,240 And so the problem is that all of these sound somehow related to interests. 143 00:21:23,870 --> 00:21:40,089 But. They cannot be aggregated innovators, and there is no metric by which these contradictory interests and or interpretations of interests add up. 144 00:21:40,090 --> 00:21:47,800 And therefore we still don't know what is the best thing to do in the name of national interests. 145 00:21:48,100 --> 00:21:59,890 So and I suppose that in many issues, in many countries, this can be replicated this exercise interests, 146 00:22:00,160 --> 00:22:10,719 in spite of all the respect we have learned to develop forum for a realist approaches to 147 00:22:10,720 --> 00:22:18,340 national as well as international policy interests do not tell you very much what you must do. 148 00:22:18,730 --> 00:22:23,350 That is, interests are very ambiguous. 149 00:22:23,680 --> 00:22:31,780 You don't know what your interests are. What you do know is about the shifting. 150 00:22:33,210 --> 00:22:46,860 Attitudes in the mass constituency are we have as far as trust in Europe is concerned and trust in European policymaking. 151 00:22:47,250 --> 00:22:55,800 In many countries, a development that in German, Germany looks the following way in the year 2002. 152 00:22:56,190 --> 00:23:01,470 The question is, do you trust the European Union? 153 00:23:01,740 --> 00:23:11,190 Very simple survey question was answered in the positive by 49% of the respondents and in the negative by 40%. 154 00:23:11,790 --> 00:23:15,900 Today, January 2011, 155 00:23:16,440 --> 00:23:32,610 the figures are that only 25% express trust in the European Union and its policymaking capacity and the full 67% vote in the negative, 156 00:23:32,730 --> 00:23:40,350 since they do not have any interest in the European Union. 157 00:23:40,680 --> 00:23:46,499 This is a dramatic shift, much of which not exclusively can, in the German case, 158 00:23:46,500 --> 00:24:02,850 be explained as a response to the Greek financial crisis and the interpretation that governing political elites have provided of this crisis. 159 00:24:02,850 --> 00:24:15,860 Namely, they are spendthrift and lack discipline and we are supposed to bail them out and it is them against be attitude, 160 00:24:16,440 --> 00:24:30,270 a short sighted political logic of of interest, which has not been really counterbalanced by the other considerations, as I have summarised them. 161 00:24:31,500 --> 00:24:45,209 Okay. What prevails in Europe is a pattern of negative integration of markets that is designed to increase the option of economic 162 00:24:45,210 --> 00:24:54,630 exits and is designed to debase the governing capacity of national governments and their protectionist inclinations. 163 00:24:55,950 --> 00:25:08,700 The market integration provides options for exits and punishes protectionist inclinations, 164 00:25:08,700 --> 00:25:13,319 but the process has not been complemented by some supranational positive 165 00:25:13,320 --> 00:25:18,420 integration or the restoration of governing capacity at the European level itself. 166 00:25:18,660 --> 00:25:25,500 In fact, the residual elements of governing capacity that remain intact at the level of Member States are used 167 00:25:25,500 --> 00:25:31,500 by them to obstruct the transfer of governance capacity from the national to the European level. 168 00:25:31,920 --> 00:25:41,550 Thus, negative integration both decimates national policymaking capacity and induces national governments to cling to whatever remains of it, 169 00:25:41,880 --> 00:25:45,480 rather than sacrificing it for the sake of positive integration. 170 00:25:45,960 --> 00:25:54,840 There is a strong sense of in the national public sphere of Member States, 171 00:25:55,080 --> 00:26:00,180 and that applies to both sides of the former and curtain a strong sense of rivalry, 172 00:26:00,540 --> 00:26:09,110 jealousy, the pursuit of whatever is defined as the national interest. 173 00:26:09,570 --> 00:26:19,710 And although that concept itself is fictitious and that interferes with European policymaking capacity. 174 00:26:20,760 --> 00:26:25,980 Let me I have a list here of. 175 00:26:30,800 --> 00:26:43,430 A number of the controversies that evolve between member states of ongoing issues on which by whatever methods, 176 00:26:43,430 --> 00:26:56,060 the community method, the open method of coordination or unilateral leadership attempted by some countries has not been resolved. 177 00:26:56,510 --> 00:27:05,990 And these policy issues that evade effective European harmonisation include the following. 178 00:27:06,710 --> 00:27:13,250 The concern is in migration of labour, with all its ramification in terms of loss of jobs, 179 00:27:13,250 --> 00:27:18,800 decline of wages in the rich countries, ethnic conflicts, political backlash and so on. 180 00:27:19,820 --> 00:27:22,090 Everything that has to do with migration. 181 00:27:22,110 --> 00:27:30,890 Secondly, outward flow of investments to EU countries with lower costs of employment and in particular lower taxes, 182 00:27:31,310 --> 00:27:35,300 and hence the loss of employment and prosperity at the national level. 183 00:27:35,900 --> 00:27:43,610 Third, the fiscal redistribution within the EU and in particular a larger EU consisting not only 184 00:27:43,610 --> 00:27:48,439 in a net transfer of funds from the rich to the less prosperous countries and regions, 185 00:27:48,440 --> 00:27:54,349 but also in the relative deprivation that the previous net receivers, 186 00:27:54,350 --> 00:27:57,920 namely the Mediterranean countries, 187 00:27:59,390 --> 00:28:05,060 are suffering or feel they are suffering after the accession of new and even poorer and therefore 188 00:28:05,060 --> 00:28:11,150 even more deserving claimants among the new Member States in the east and southeast of Europe. 189 00:28:11,930 --> 00:28:23,389 For the competition in markets, for goods and services, which is likely to drive productivity laggards in their respective industries out of business, 190 00:28:23,390 --> 00:28:34,879 thereby adding to the persistently high level of unemployment in the most current member states and the 191 00:28:34,880 --> 00:28:42,950 impossibility to do something about this problem by protectionist national protectionist measures. 192 00:28:43,520 --> 00:28:49,669 The fifth the disadvantages imposed upon new member states by their being forced 193 00:28:49,670 --> 00:28:55,190 to adopt an entire I keep company dare as a precondition of their accession. 194 00:28:55,200 --> 00:29:00,620 The disadvantages current member countries suffer in terms of the loss of protection 195 00:29:00,950 --> 00:29:06,890 as a consequence of European of the of European Court of Justice rulings. 196 00:29:07,130 --> 00:29:16,700 And it is, in fact just that minorities of one or more countries fear will result from majority decisions within the Council of Ministers, 197 00:29:17,090 --> 00:29:28,130 which are contrary to their majority in national preferences, all of which gives rise to the fear of Europe becoming a form of foreign rule. 198 00:29:28,140 --> 00:29:45,380 And this sense of being controlled by the outside is very intense and explicit in the in the new member states of the socialist economies. 199 00:29:45,830 --> 00:29:59,750 And it does not help, although it is a nice point made by a very prominent European politician that they he said, in my public situation, 200 00:30:00,200 --> 00:30:08,660 well, they the Poles, the Hungarians, they have still to learn that there is a difference between that what was so and progressive. 201 00:30:09,830 --> 00:30:15,380 But the willingness to appreciate that difference is perhaps limited. 202 00:30:15,860 --> 00:30:27,170 And then of course, there is the financial market crisis of 2008 and its aftermath in the form of a pervasive 203 00:30:27,530 --> 00:30:33,130 fiscal crisis that affects the new member states much more seriously than the over. 204 00:30:33,260 --> 00:30:41,690 Let me try this. You see here the change from 2000 to 2009. 205 00:30:42,320 --> 00:30:49,730 The only exception that survived this relatively favourably is Poland. 206 00:30:50,210 --> 00:31:02,840 For the Polish exceptionalism and not the case of this is is you see this way in Latvia and Romania and even Slovenia, 207 00:31:02,840 --> 00:31:10,100 which otherwise is doing quite well and have massive negative growth rates. 208 00:31:10,850 --> 00:31:18,410 And they have also, except for those who have adopted the euro or are tied to the euro, 209 00:31:18,860 --> 00:31:27,260 they have all these very unfavourable ratings for their credit was worse in this. 210 00:31:27,770 --> 00:31:36,740 And I wanted to. It just highlighted the seriousness of the of the problem here this. 211 00:31:36,950 --> 00:31:54,740 Now let me come to to the surge construction site namely the old was the new member states and the dynamics of conflict after accession enlargement. 212 00:31:54,950 --> 00:32:03,050 The end of conditionality, however you want to call it. In order to model the unfolding conflicts between the old and new member states, 213 00:32:04,190 --> 00:32:11,330 I suggest a sequence of three stages of strategic objectives and driving motivational forces. 214 00:32:11,720 --> 00:32:17,690 The three stages which apply to the old and the new Member States are first, 215 00:32:17,990 --> 00:32:23,420 the formulation of strategic objectives, which took place sometime in the nineties. 216 00:32:23,870 --> 00:32:38,720 Secondly, awareness of the costs of achieving those objectives, which took place shortly before and since actually accession. 217 00:32:39,260 --> 00:32:46,969 And third, the satisfaction of the disenchantment and frustration with the extent to which 218 00:32:46,970 --> 00:32:52,070 the objectives may or may not have been actually reached and at what cost. 219 00:32:52,340 --> 00:32:57,170 So this is a timeline where you first make plans. 220 00:32:57,560 --> 00:33:01,610 Then you see what their realisation costs and how far it proceeds. 221 00:33:01,880 --> 00:33:11,950 And then thirdly, you draw conclusions and you do so on both sides of the EU 15 and the EU ten, starting with the old Member States. 222 00:33:11,960 --> 00:33:20,960 The original motivation for promoting Eastern enlargement was doubtlessly of a primary, primarily political nature, 223 00:33:20,960 --> 00:33:27,650 because the priorities of the EU as well as NATO's around the mid-nineties consisted in helping to 224 00:33:27,650 --> 00:33:35,990 consolidate democracy and the rule of law in the C Central Eastern Europe region through externally, 225 00:33:36,530 --> 00:33:40,490 through externally imposed conditionality, 226 00:33:41,000 --> 00:33:49,850 and thereby to normalise the political development of prospective member states through more or less soft forms of outside control. 227 00:33:50,720 --> 00:33:58,670 In contrast, the new Member States, having just escaped from a tight and authoritarian form of supranational control, 228 00:33:59,350 --> 00:34:07,700 they are mostly reluctant and sceptical about joining Europe and adopting a readymade are key. 229 00:34:08,360 --> 00:34:16,400 But this scepticism and reluctance was consistently trumped by the prospect of past socialist reconstruction 230 00:34:16,880 --> 00:34:24,620 that were based upon the expectation of free access of goods and workers to Western markets, 231 00:34:25,010 --> 00:34:30,590 the inflow of foreign direct investment into the Central East European region, 232 00:34:30,980 --> 00:34:39,230 and the claims to modernisation subsidies that would come from the EU once full membership status was achieved. 233 00:34:40,280 --> 00:34:49,609 Once the enlargement process was completed in May 2004, respectively. 234 00:34:49,610 --> 00:34:58,880 In January 2007, both sides experienced a wave of second thoughts among the new member states. 235 00:34:59,870 --> 00:35:12,170 These consisted in the realisation of failures and an awareness of necessary sacrifices concerning the respective subordinate objectives. 236 00:35:12,470 --> 00:35:19,520 As to the old Member States, their intended political aim of having stable and democratic eastern neighbours was 237 00:35:19,520 --> 00:35:25,910 partly offset by the growing economic challenges originating from the Sea region. 238 00:35:26,480 --> 00:35:34,730 These challenges came in the form of an inflow of goods and labour and an outflow of investment and funds allocated 239 00:35:34,730 --> 00:35:47,420 from the EU budgets and the strategy of the new Member States to introduce a very low and flat rate Texas, 240 00:35:47,660 --> 00:35:54,650 both in income tax and incorporation, corporate taxation and in value added tax. 241 00:35:55,010 --> 00:36:08,149 I mean as low as 10% in Bulgaria added to the of to the concerns of the old member states. 242 00:36:08,150 --> 00:36:17,900 I mean, big corporate taxes in Denmark, 56% and in Bulgaria 10%. 243 00:36:18,320 --> 00:36:22,340 And that makes for differences that that they are very unhappy with. 244 00:36:23,270 --> 00:36:29,360 Similarly and in a strictly symmetric of fashion elites as well as none of these and the new member states. 245 00:36:29,420 --> 00:36:34,639 Begin to perceive the political costs of membership because that were framed in terms 246 00:36:34,640 --> 00:36:40,580 of losses of national autonomy and the need to comply with EU wide rules and policies. 247 00:36:41,030 --> 00:36:46,430 Thus, both sides begin to perceive the reasons for asking themselves was the price we 248 00:36:46,460 --> 00:36:52,550 had to pay for achieving our primary objectives really was what we got for it. 249 00:36:53,300 --> 00:37:04,670 Finally, if we read a variety of current indicators that emerge in the newly integrated political economy of Europe, rightly, 250 00:37:04,670 --> 00:37:17,900 a third phase of regret and frustration or disenchantment has become dominant as the dynamics of the EU 27 or 25 unfolds. 251 00:37:17,930 --> 00:37:25,130 To put it bluntly, both sides begin to see that what they actually receive for paying the price they paid 252 00:37:25,610 --> 00:37:32,900 is less than what they had anticipated and hoped for from an EU 15 point of view. 253 00:37:32,930 --> 00:37:45,229 The second disappointment relates to the fact that neither regime stability nor the liberal democratic consensus, nor for that matter, 254 00:37:45,230 --> 00:37:56,930 a modern and reasonably corruption free state structure has emerged in the region, has taken firm roots in all parts of the region, 255 00:37:57,440 --> 00:38:06,379 a disillusion that is all the deeper as it comes with the realisation that after formal accession has passed, 256 00:38:06,380 --> 00:38:16,580 the leverage of conditionality has practically become inoperative and there are even signs of backsliding. 257 00:38:18,740 --> 00:38:24,890 And I think there's perhaps too much the expenses room of this one seat, very much, 258 00:38:25,100 --> 00:38:33,110 perhaps too much emphasis on the media law in Hungary, but it is read as an example for backsliding. 259 00:38:34,580 --> 00:38:45,530 One also from the region has said sarcastically Now after conditionality is over, we can show them who we really are. 260 00:38:47,480 --> 00:38:53,840 But maybe that is exaggerated to to use the Hungarian media at all. 261 00:38:53,990 --> 00:39:00,050 But it is blithely done so in the in the Western media case of backsliding. 262 00:39:00,890 --> 00:39:01,610 Conversely, 263 00:39:01,610 --> 00:39:17,180 the EU ten new member states have also begun to look back at the deal they were drawn into and to see it as a definitely and favourable one. 264 00:39:17,510 --> 00:39:22,610 Not only have they sacrificed too much in terms of national autonomy, 265 00:39:23,000 --> 00:39:30,560 this is the official government rhetoric in places such as Poland and the Czech Republic with President Klaus. 266 00:39:31,850 --> 00:39:35,370 But also they receive too little in return. 267 00:39:35,390 --> 00:39:44,720 That is in terms of the all the member states preparedness to assist them on the road to a robust economic prosperity, 268 00:39:44,990 --> 00:39:49,430 rather than keeping them in a position of permanent economic dependency. 269 00:39:49,730 --> 00:39:59,870 This is a new experience. I mean, what is the most automobile intensive economy worldwide? 270 00:39:59,900 --> 00:40:12,139 The answer is Slovakia. They produce 100 cars per year, per thousand inhabitants, 100,000. 271 00:40:12,140 --> 00:40:15,730 And happiness is it is is monocultural. 272 00:40:15,740 --> 00:40:25,030 And if something changes and some people even hope something will change in the mobility regime of Europeans, 273 00:40:25,340 --> 00:40:29,510 then they are likely to suffer very badly from from shifts. 274 00:40:29,510 --> 00:40:35,000 They are dependent upon this. I quoted another example from from Hungary. 275 00:40:35,330 --> 00:40:47,840 So these are dependent economies that are very vulnerable if some major changes, of course occur in Western Europe. 276 00:40:48,680 --> 00:40:56,240 Now, of course, time to show whether and to what extent the second and third stages of this somewhat gloomy model will materialise. 277 00:40:56,570 --> 00:41:03,350 Concerning the first stage and the initial patterns of motivation at the beginning of the process that led to Eastern enlargement, 278 00:41:03,560 --> 00:41:10,130 it is worth noting that the enthusiasm for returning to Europe as the Polish phrase was in the early nineties, 279 00:41:10,580 --> 00:41:14,330 both within the candidates countries as well as in the EU. 280 00:41:14,330 --> 00:41:20,270 15 Member States was markedly qualified in 1994. 281 00:41:20,930 --> 00:41:29,150 Eurobarometer data show that the least welcome and least favourable assessed best European kind of. 282 00:41:29,250 --> 00:41:36,560 That country, namely Norway, was supported by 75% of the EU 12 citizens, 283 00:41:37,160 --> 00:41:45,440 running a full 20 percentage points ahead in terms of the support for membership compared to the most welcome. 284 00:41:45,560 --> 00:41:54,139 Most welcome. East European candidate country, which at the time was Hungary and 55% of West Europeans. 285 00:41:54,140 --> 00:42:07,219 So it is a good idea to admit Hungary. So the the the frame of the mental frame of counting upon the idea of cut and the divide 286 00:42:07,220 --> 00:42:13,910 of Europe is still present both in the West and in the East in a very powerful way. 287 00:42:13,910 --> 00:42:19,280 And the one side look at them over there and the other side looks at them over here. 288 00:42:19,550 --> 00:42:27,230 And it is still a mental frame that informs many policy moves. 289 00:42:27,230 --> 00:42:32,090 In other words, the political divide continues to play a significant role. 290 00:42:32,090 --> 00:42:37,459 The legacy of the Iron Curtain, as well as other historical, cultural, economic, geographical, 291 00:42:37,460 --> 00:42:49,370 linguistic and religious differences that exist between the EU 15 and the EU ten, where accession is in fact approved on either side. 292 00:42:49,400 --> 00:42:58,129 Such support for enlargement reflects nothing like European solidarity, but to a large extent, 293 00:42:58,130 --> 00:43:03,260 as one author has put it, not altruistic motives at the point of actual accession. 294 00:43:03,260 --> 00:43:15,590 In May 2004, the supporters of enlargement within the EU 1515 just barely outnumber the opponents by 42 to 39%. 295 00:43:16,670 --> 00:43:18,590 Among the EU, ten. 296 00:43:18,590 --> 00:43:30,830 Only in Slovenia and Lithuania did an absolute majority of eligible citizens, namely 54 and 58%, support the accession of their countries. 297 00:43:31,400 --> 00:43:40,610 There is a strong legacy of state socialism and not just in the demarcation line which is somehow mentally present. 298 00:43:40,610 --> 00:43:50,750 Although physically, of course, no longer an obvious place to test the hypothesis of. 299 00:43:52,340 --> 00:43:59,389 Perseverance of mental frames or cultural leg theory of transition is the part of 300 00:43:59,390 --> 00:44:04,459 Germany that used to be until the formal end of the state through unification 1990, 301 00:44:04,460 --> 00:44:07,550 the demographic and territorial basis of the GDR. 302 00:44:08,570 --> 00:44:13,100 Even after 20 years since the end of the German case of state socialism, 303 00:44:13,130 --> 00:44:20,750 the normative demarcation line between public and individual responsibilities continues to clearly 304 00:44:20,750 --> 00:44:28,430 show up in opinion surveys comparing East Germany and West Germany as if in a natural experiment, 305 00:44:28,430 --> 00:44:38,979 the GDR. The only example of transition through state murder or the death of a state is contrasting 306 00:44:38,980 --> 00:44:46,120 to the six C case of transitions through the separation of states or state births. 307 00:44:46,660 --> 00:44:56,770 So the GDR allows us to study the vast afterlife of the normative underpinnings of guiding ideas of states and socialism. 308 00:44:57,340 --> 00:44:58,900 The Long Arm of the Past. 309 00:44:59,320 --> 00:45:09,160 To summarise just a few findings from recent German surveys, East Germans favour a significantly more substantive definition of democracy. 310 00:45:09,700 --> 00:45:12,970 They think that democracy implies providing for jobs. 311 00:45:13,780 --> 00:45:20,230 They think that real democracy provides control over the banks. 312 00:45:20,740 --> 00:45:30,930 And they think that's democracy as it is practised in their pursuit. 313 00:45:31,210 --> 00:45:47,840 Procedures of a is deficient. And so the assessment of and I want to show this the assessment of market economy and institutions 314 00:45:48,430 --> 00:45:56,200 and we have very good data on this from the European Bank of Reconstruction and Development. 315 00:45:56,710 --> 00:46:03,130 And if I succeed and okay, this is a good example, the economic situation, this is 2006 data. 316 00:46:03,970 --> 00:46:12,910 The economic situation of this country is better today than around 1989, 317 00:46:12,910 --> 00:46:25,570 and the positive answers are in yellow and CB is Central Europe and Balkans and Southeast Europe is as e and as you see in both cases, 318 00:46:25,690 --> 00:46:30,940 these minorities are evaluating the situation. 319 00:46:30,950 --> 00:46:37,720 What is more interesting is that consistently through these macro evaluations, 320 00:46:38,140 --> 00:46:46,630 you'll see that the younger are more favourably disposed in all three regions. 321 00:46:46,990 --> 00:47:00,280 You have to this definition by and by age group and that of the LCR are more favourably disposed younger. 322 00:47:00,520 --> 00:47:07,810 That can be a life cycle phenomenon or it can be a cohort phenomenon phenomenon and it remains to be seen. 323 00:47:09,010 --> 00:47:18,790 For the time being, we can say that a minority of people are satisfied with the economic situation in the country 324 00:47:19,240 --> 00:47:26,920 and that the young people and the more prosperous people are much more unsurprisingly, 325 00:47:27,220 --> 00:47:33,160 favourably disposed. And it can be can show it not to one. 326 00:47:35,800 --> 00:47:39,010 And attitude. Okay, this is attitude. 327 00:47:40,210 --> 00:47:50,080 It's a slightly better profile, but you see the same pattern as the younger, the better, and the richer and the better. 328 00:47:50,320 --> 00:47:59,620 And overall it is less than 60% of favourable judgements. 329 00:47:59,620 --> 00:48:03,040 I can come to an end. Uh, okay. 330 00:48:03,040 --> 00:48:13,089 This is overall life satisfaction. Uh, which in Central Europe and the Balkans reaches just about 50%, maybe lower. 331 00:48:13,090 --> 00:48:21,970 So to distribute it in north of eight below in the former Soviet Union, the same pattern that you see at the at the bottom here. 332 00:48:23,310 --> 00:48:42,930 Let at least this. Rather unsurprisingly, and given the weakness of liberal traditions of political culture in the region, 333 00:48:43,800 --> 00:48:55,530 this imbalance provides vast political opportunities for ethno nationalist, populist, anti-European mobilisation. 334 00:48:55,800 --> 00:49:02,640 What I mean by this populism is a drama of its three persons. 335 00:49:04,050 --> 00:49:18,120 This is first we, the good, simple people, honest and trustworthy them our enemies, which can be enemies above enemies from the outside. 336 00:49:18,210 --> 00:49:26,070 Two versions of this that the political the political elite is the business elite, 337 00:49:26,610 --> 00:49:43,110 which leads to a leftist version of populism or minorities and spies and so on, which is rather discriminatory rightist populism. 338 00:49:43,110 --> 00:49:50,790 And then third person in the game is a leader that unites us against them. 339 00:49:51,360 --> 00:50:00,299 And this game of pointing at the enemies, pointing at the leader and the self-description as simple, 340 00:50:00,300 --> 00:50:08,400 trustworthy and good versus evil, corrupt and alien is the basic. 341 00:50:08,850 --> 00:50:18,510 And this is much more common, although is also in some of West European societies is much more common in the east, 342 00:50:18,810 --> 00:50:31,110 partly also pointing to foreign economic elites who exploit us and take unfair advantage of us and so on. 343 00:50:31,590 --> 00:50:44,489 So let me conclude by saying and in the West, there are growing doubts as to whether the logic of Eastern enlargement, 344 00:50:44,490 --> 00:50:53,610 namely the logic of investing through opening capital and labour markets to the region and offering assistance to out of 345 00:50:53,610 --> 00:51:03,239 EU funds will actually yield the hoped for returns in terms of political stability in Central Eastern Europe and Europe. 346 00:51:03,240 --> 00:51:13,260 Wide cooperation. If anything, these doubts are being heightened or at least justified by the perception of symptoms of anti-liberal, 347 00:51:13,260 --> 00:51:21,330 ethnocentric and also anti-European backlash to be observed on the scene of politics of many of the new member states. 348 00:51:22,290 --> 00:51:27,750 My colleague Alain Juppe PD has nicely summarised this. 349 00:51:29,010 --> 00:51:36,540 The indicators of this backlash are the rise of populist groups, political radicalisation, 350 00:51:36,640 --> 00:51:46,770 weak majorities of sexual behaviour of in unstable parties and governing coalitions. 351 00:51:47,280 --> 00:51:53,220 Occasional violations of democratic standards such as the rigging of elections. 352 00:51:53,700 --> 00:52:04,320 Apart from tiny Slovenia, which is is a very exceptional place for reasons that I have a speculation about, 353 00:52:04,530 --> 00:52:09,239 apart from tiny Slovenia, even the best economic growth performance of the region, 354 00:52:09,240 --> 00:52:21,880 namely the Czech Republic, Poland and Hungary have all been backsliding in assessment of the quality of their democracies between 2000 and 2007. 355 00:52:21,900 --> 00:52:31,920 Internally unstable and externally uncooperative political elites are clearly giving rise to doubts in the old member states. 356 00:52:32,370 --> 00:52:44,610 Was it Largement really worth the effort in terms of the economic burdens involved and also what is observed with some consternation in in the West? 357 00:52:44,880 --> 00:52:56,940 Is the person in this personal listed confrontational style of in which members of political elites address each other as hostilities? 358 00:52:59,130 --> 00:53:04,800 And that applies also to partisanship in in the media. 359 00:53:05,310 --> 00:53:15,450 So what we can certainly conclude the contrary to what some political and cultural elites try to suggest. 360 00:53:15,450 --> 00:53:19,770 In the West, the transition period is not yet over. 361 00:53:19,980 --> 00:53:30,960 We are involved in the dynamic, the roots of which reach back to the Cold War and to the Iron Curtain. 362 00:53:31,320 --> 00:53:39,790 Transition is not. It over and finally accomplished to the contrary, 363 00:53:40,570 --> 00:53:47,560 the present crisis and the challenging resulting challenges resulting from it may 364 00:53:47,590 --> 00:53:57,010 reactivate mental patterns and frames as they were thought to be a matter of the past, 365 00:53:57,010 --> 00:53:58,990 but are not. Thank you very much. Thank you.