The European Union and the United States, before the election: a much deeper mutual understanding. Jean Monnet/Robert Schuman Paper Series Vol. 12 Special, October 2012

From the Introduction. Governor Romney’s statement that President Obama was trying to convert the United States into a European state actually served to point out the need for a much deeper understanding of both entities to make considerable progress in the future. The need for a close alliance is taken for granted. However, the link is riddled with confusion and stereotypes. This relationship is considered a normal fact forged by mutual historical legacies. Hence the frequent signs of awkward behaviour and misunderstandings under the cover of the notion that potential damage will be corrected by the force of the special relationship. If conflicts are detected, both parties are said to be condemned to agree. If a lack of knowledge is detected, it will be modified by accessible means. Mechanisms for an understanding and cooperation are within reach. Therefore, an effective relationship is not utopian. However, there are areas in which much work is needed to strengthen the alliance and correct its shortcomings. There is a need, not only for agreements in economic and political issues, but also for a deeper understanding of the essence of both entities.

Memo to Merkel: Post-election Germany and Europe. Bruegel Policy Brief 2013/05, 24 September 2013

Recent economic data points to the seeds of an economic recovery in the European Union. However, significant risks remain and bold policies are still needed. There are three central risks. Competitiveness adjustment is incomplete, casting doubt on the sustainability of public debt. Banking remains unstable and fragmented along national lines, resulting in unfavorable financial conditions, which further erode growth, job creation and competitiveness. Rising unemployment, especially among the young, is inequitable, unjust and politically risky. Germany has a central role to play in addressing these risks. The new German government should work on three priorities: Domestic economic policy should be more supportive of growth and adjustment, with higher public investment, a greater role for high-value added services, and more supportive immigration policy. Germany should support a meaningful banking union with a centralised resolution mechanism requiring a transfer of sovereignty to Europe for all countries including Germany. The establishment of a private investment initiative combined with a European Youth Education Fund and labour market reforms should be promoted. Building on these priorities, a significant deepening of the euro area is needed, with a genuine transfer of sovereignty, stronger institutions and democratically legitimate decision-making structures in areas of common policy.