The business case for the EU

http://www.theguardian.com/commentisfree/2014/may/22/eu-elections-european-integration

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It may not always feel like it when we cast our votes, but European elections are a reminder that the 28 member states of the EU have much to be proud of. Indeed, the EU exists because Europeans decided to place war firmly in the past and elevate the common interest over national goals. It is too easy to forget what a remarkable achievement that is. Sixty years after the EU was created, familiarity means it is too often under-appreciated and its benefits taken for granted. Too many Europeans regard it as a distant and complex institution that has little relevance to their own lives.

It is easy to be cynical, but as a business leader and chairman of Ericsson and AstraZeneca, I recognise the real benefits EU membership brings every day to its 500 million citizens. Research carried out by the European parliament estimates that a single market, if fully realised, would be worth an additional €800bn to GDP, the equivalent of €4,200 a year for each EU household. The European Round Table of Industrialists, which I also chair, and whose members include Rolls-Royce, BP, Rio Tinto, Vodafone, Ericsson and Air Liquide, will continue to push for the creation of that single market.

The case against Europe, which is being made as loudly now as ever before, is often based on an argument that EU membership is expensive and that regulation constitutes an unacceptable financial burden. In fact, the benefits of membership are real and tangible.

Over the past 60 years the EU has brought peace to a continent ravaged throughout history by war, as recognised by the Nobel Prize committee in 2012. In the absence of war, prosperity has flourished. The EU has become the world's largest economy, generating €12tn annually, twice that of China and bigger even than the US, dramatically improving the living standards of 500 million people. The fruits of greater integration and cooperation can be found everywhere. Vastly improved transport links across the continent provide a visible expression of a Europe that is coming closer together.

The EU's Trans-European Networks policy provides funding for high-speed railways, airports and ports making it easier to operate faster and more safely across the EU. The Single European Sky project will create shorter flight times by linking national air traffic control services. EU citizens also benefit from common EU action to improve air quality and global reductions of greenhouse gas emissions. The EU's regional development funds have helped to transform areas blighted by economic and industrial decline, as well as preserving the cultural and historical heritage of which Europeans are justifiably proud. All of these initiatives have produced real and tangible benefits for EU citizens.

The "eurozone crisis" is used as a catch-all term for the effects of a global economic malaise, the causes of which were complex and deep-rooted. But it would be wrong to allow those who attack the EU project to dominate the debate over its future as the continent continues its path to recovery. The elections this week, followed by the appointment of a new European commission later this year, will usher in a new political term that represents a huge opportunity for the EU to create jobs, reduce poverty and strengthen its position as a leading global economy.

There is much the EU could do better. An integrated financial services market would result in gains for the EU economy of up to €60bn, while removing obstacles to cross-border trade in the telecoms market and other service industries, which account for 70% of EU GDP, would further boost growth. The creation of a digital single market, which among other things would make it easier to shop online across the EU, could add an additional €260bn to the EU economy.

Europe must also create a workforce with the skills and qualifications employers need; the EU needs a common energy policy that will make it less vulnerable to supply problems caused by international crises, while bills urgently need to fall for businesses and consumers alike. The history of the EU shows all of that can be achieved, but sometimes it helps to remember just how far we've already travelled. Reminding ourselves of the benefits EU membership has already brought us will strengthen the resolve of those who are fighting to ensure those benefits continue to be felt.