The relations between Germany, the European Union and Russia can be summed up in five words: We depend on one another. None of the great issues of our time will be resolved without working together.
And this is
why we should do everything in our power to treat our relationships with care
and attention and to nurture and develop them in the best way possible.
The image of Russia in Europe is often not very
flattering and not very fair. In Germany, we have an old saying that goes like
this: “When Russia seems strong, it is not as strong as it seems. When Russia
seems weak, it is not as weak as it seems.” My impression is that at present we
should pay attention to the second half of this saying.
It is a very positive sign that the recent top-level
meetings between the EU and Russia have been constructive and that these
relationships are evidently picking up speed. For the EU, Russia is an
outstandingly important partner in all essential areas — economic cooperation,
security of energy supply, environmental and climate protection, and protection
of law and order.
Therefore, it is a good thing when the two principal
partners on our continent — the EU and Russia — team up to collaborate to help
modernize and diversify the Russian economy. Such a “partnership for modernization”
is an extremely constructive approach, and it is obvious to both sides that the
private sector must play a decisive role in Russia’s economic development.
One of the chief roles of government is to ensure public
welfare. It needs to protect its citizens and their freedoms, including freedom
from hardship. As far as entrepreneurs are concerned, however, the state should
not be overbearing. For that reason, we need fair and free trade and
competition and should beware of the dangerous ripple effects of protectionism.
Open borders are in the global interest and especially in the interest of
developing countries.
Nevertheless, open markets require regulations.
Therefore, it is both right and important that we have the World Trade
Organization as a critical tool of regulating and safeguarding free and fair
global trade. It would be a very welcome move indeed if Russia at this point
would join the WTO as well.
Mutual dependence is also a critical component in the
EU-Russian relationship. The EU needs Russian energy, and Russia needs the EU
as a buyer, an investor and a supplier of technology. This mutual dependence
should drive the sides to reach an understanding. It should also encourage
Russia to finally accept and ratify the international Energy Charter. This
would be a major confidence-building step forward.
The topics of increasing energy efficiency and energy
savings are of the utmost importance to the Russian government. Therefore, it
is good to know that in this area of research, enterprises from the EU member
states make excellent cooperation partners for Russian companies in a whole
range of manufacturing and service sectors, whether the aim is to increase
energy efficiency in industrial production or to achieve energy savings in the
private sector.
Today, more than ever, economic development in the wake
of the global financial crisis and the recession is accompanied by considerable
uncertainties. For this reason, it seems advisable not to do anything that
would intensify political and administrative control over economic events,
beyond the necessary regulatory framework. The economy must be able to provide
economic growth and profit for companies in a competitive environment.
Excessive bureaucratic barriers and obstacles that hinder economic growth and
innovation and hamper trade, expansion and investments should be abolished
where there is no justification for them.
In the interest of both Russia and the EU, we need
stronger economic growth and more jobs. The largest obstacles to growth should
be removed, and the measures that can help increase growth and jobs should be
implemented, including visa-free travel for businesspeople.
I am convinced that increased cooperation and partnership
between the EU and Russia will be vitally important to the future of Europe and
the entire world. We should draw the necessary conclusions and establish such a
partnership.
**Wolfgang Clement is a former German minister of
economics and labor. This comment is a shortened version of a Sept. 24 speech
to the Association of European Businesses at the European and Russian Business
Forum.