Europe: adding value, changing quickly

London School of Economics

London, 19 January 2004

Introduction

I feel particularly at home here at the London School of Economics. I was here as an industrial economist under Basil Yamey, so I regard the LSE as one of my intellectual homes. And next time you read in the press about the Brussels bureaucrats, at least you will know there is an LSE man at the helm of the Commission, at least for the next future.
Economics or Politics?
I find it interesting that the debate about the European Union here so often starts by asking whether this is essentially an economic or political enterprise.
There seems to be agreement that an EU based on economics and trade makes sense. But the implication is that the EU should steer clear of anything "political".
Here on the platform at the London School of Economics and Political Science, however, it seems that it might not be so easy to draw clear distinctions.
However, it is clear that the Europe of the single market and the single currency has assumed a stronger political dimension, as a broad area of shared principles and values, and it will assure a more and more political dimension. And consider this as a remarkable result of my mandate.

Enlargement

Now, enlargement is about to move the European Union onto a new level.
In May this year, ten new Member States will join the Union. Yes, this means 75 million more consumers. Yes, the economic opportunities available in an expanded single market are the subject of business seminars up and down the UK and other Member States. But enlargement is about much more than just economics.
Enlargement takes place because the Governments and peoples of the new Member States see their destinies as part of the EU family, even if with some contradictions and some fears that can be totally eliminated only through a period of common life.
It represents a major political process in European history.
And it is based on the will expressed clearly by millions of people
In eight of the new Member States, the decision to join has been backed by referendums with impressive majorities in favour. It is perhaps a paradox that although the EU may have become less popular in some of the current Member States there has never been such a wave of positive political support and desire to join from so many aspiring members.
But if you really think about it, is that a paradox?

Full speech is available on-line at:

http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=SPEECH/04/23|0|RAPID&lg=EN