Lessons from the EU

On May 16^th, 2012, Mr. Maros Sefcovic, Vice President of the European Commission, delivered a public lecture at Yonsei University Gwangbok Hall Annex International Conference Room.

Mr. Sefcovic began his lecture by recounting his experiences as a Slovak diplomat, representing his nation in its efforts to join the European Union, as well as his experiences as a European Commissioner, representing the entirety of Europe and the European Union. The European Union manages to grab headlines, mainly because it is the biggest economy in the world. The European Union is responsible and very much aware of its impact on the world economy, said Mr. Sefcovic.

When the financial crisis struck in Europe, the immediate concerns were overwhelming, which left Europe without much headroom for examining the Union, or learning lessons from the crisis. In hindsight, the European leaders did not fully comprehend just how interdependent and interlinked the European economies had become. For the first time, the solutions to the ills of one country were present in other nations and vice versa. To bridge these dissonant links, a European solution was required. However, in a situation where each country and each financial minister wants to the master of their economic policy, such solutions are difficult to coordinate.

There was much frustration and dissent from the public regarding the financial sector’s involvement in sovereign debt. Since the financial industry had received much from the government, the financial markets should contribute to the crisis, claimed public opinion. When financial markets were made to assume the risk in purchasing government bonds, the market responded with skyrocketing premiums, and another solution had to be found.

Thus the European’s Commission proposal for a complex solution was supported. This called for an ambitious economic governance within the European union to solve the economic crisis. After very tough negotiations with international bankers which led to the voluntary haircuts of debt, the Eurozone has been slowly but surely escaping the crisis since then. The European Union has poured trillions into the financial market, calming it and waiting for the liquidity to trickle down to the businesses and real economy; this remains to be seen.

Economic governance of the Commission is expected to keep macroeconomic balances under control. Each year the European Commission will present an overall economic analysis, highlighting key action for the European Union and member states. This will then be approved by leaders and heads of state, with each nation-state pursuing national reform; country-specific recommendations for more focused approaches will be provided as well.

For the first time, the Commission will be receiving the budget proposals of every nation state. The Commission will evaluate whether they are in line with regulations, and whether they reach consolidation targets. National parliaments shall retain sovereign rights to decide their governmental budgets, but they will also be fully aware of the opinion of the European Commission, and the consequences that will follow. The decision is simple; manage a reasonable budget or be fined. Public finances have recovered much since the crisis, and is expected to continue improving.

An initiative to open the services market of the European Union, with over 500 million people, is currently pending. This true unified market for the service sector is expected to bring much needed economic growth for the Eurozone. Despite the effectiveness of these measures, the sensitivity of the services sector and political considerations has delayed the procedure. The European Commission is convincing European leaders to take the steps to further liberalization. Also, other important agreements on the EU level are being implemented. Structural and regulatory measures, financial measures, project bonds are active and the EFSF is aiding European countries in trouble.

The fabric of the European Union is very strong, said Mr. Sefcovic. The EU, working together as a family, is a perfect example of how individuality and teamwork co-exist within an institution.

5월 16일, 연세대학교 광복관 별관 국제회의실에서 유럽연합 마로스 세프코비치 부집행위원장의 강연이 열렸다. 이번 강연에서 세프코비치 부집행위원장은 유럽연합이 유럽 재정위기를 거치면서 얻은 교훈들에 대하여 설명하였다. 유럽연합은 세계에서 가장 거대한 경제권으로서의 책임감을 느끼고 있으며, 유럽이 어떻게 다른 나라들의 경제에 영향을 미치는지도 인식하고 있다고 말하였다.

경제위기가 처음 유럽을 강타했을때, 유럽의 지도자들은 유럽 각국의 경제가 얼마나 긴밀하게 연결되어 있는지 파악하지 못한 상태였다. 하지만 경제위기를 겪으면서 유럽연합은 유럽의 문제는 더이상 국경으로 구분이 불가능하며, 유럽의 경제 문제를 해결하기 위해서는 유럽을 아우르는 해법이 필요하지만, 각 나라의 지도자들과 재무장권들이 직접 문제를 해결하고 싶어하는 상황에서 그러한 협력을 이루어내기는 어려웠다.

대다수 유럽 시민들은 금융업계가 지금까지 얻은 특혜를 근거로 금융회사들이 경제위기를 책임지기를 원하였다. 하지만 유럽연합이 부실 국채의 책임을 금융시장에 지우려 하자 시장은 즉각 반응하였고, 급격한 신용 경색이 찾아왔다. 이런 상황을 피하기 위해 유럽집행위원회는 해결방안을 제시하였다. 국제은행가들과의 힘든 협상끝에 국가 채무를 일부 탕감할수 있었고, 유로존은 그때부터 서서히 위기에서 벗어나고 있다. 금융시장에 투입한 수 조 유로의 자금은 곧 실물경제에도 영향을 줄수 있을것으로 기대한다.

유럽연합 집행위원회는 사상 처음으로 매년 각 회원국들의 예산집행안에 대해 보고받을 예정이며, 각 국가가 방만한 재정 운영을 하고 있지는 않은지, 현실적인 경제 성장 목표를 채택하고 있는지를 감시할 예정이다. 국가 예산을 결정할 권한은 각 국가의 의회가 유지하지만, 만일 유럽연합에서 협의한 기준을 지키지 않는다면 그에 상응하는 벌금을 부과할 예정이다. 경제 개혁을 주도하는것은 회원국들이지만 거시경제적 지표들을 유럽집행위원회에서 지속적으로 관리하고, 각 나라에 적합한 권고사항들을 전달할 예정이다.

세프코비치 부집행위원은 유럽이 이번 위기를 통해 성장했으며, 앞으로 닥치는 위기도 충분히 넘길 수 있을 것이라는 말로 강연을 마무리했다.