The European House - Ambrosetti. Celebrating the 60 th anniversary of the Treaties of Rome: a history of achievements, we should not take for granted

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1 September n 4 The European Houe - Ambroetti Thi Lettera i an initiative of Ambroetti Club. However, it content may not reflect the view of all Club member. 4 Celebrating the 60 th anniverary of the Treatie of Rome: a hitory of achievement, we hould not take for granted FORWARD The European Union i a unique economic and political partnerhip among today 27+ different countrie, with around half billion citizen. It i a tory of ucce which ha come a long way ince the Treatie of Rome ignature in 1957, achieving ignificant miletone with the creation of a frontier-free ingle market, the paport-free Schengen Area, a monetary union with a ingle currency, common agricultural, trade, foreign and ecurity policie. While there i no way of knowing how Europe would have fared without the EU, it ha reunited a fractured and conflict prone continent and it ha without any doubt been the main force behind the unprecedented political tability, economic and ocial progre acro the continent over the pat 60 year. With 23% of world GDP and only about 7% of the world population, the EU i today one of the tronget economic region in the world and one of the bet place where to live. It origin trace back into the legacy of the WWII and the geniu of the founding father wa to ee that ome form of cooperation and integration would have prevented the kind of extreme nationalim that caued the war in a firt place and the reulting devatation. We need to remind that the launch of the European project wa a repone to a hitoric catatrophe, the ource of which wa exactly the quetioning of Europe liberal democracy value: human right, civil libertie, including the freedom of peech and religion, free market and a competitive economy baed on private property, fair ditribution of good, retriction on power 1, tolerance and political pluralim. Thee are the value which bind all the main ideological current in Europe - liberalim, conervatim and ocialim - and we think the mot eriou crii of modern time i the weakening of faith in the durability and purpoe of thee value, which are the true foundation of the European Union and, more broadly, of the whole political community of the Wet. The Treatie of Rome deciively moved the cooperation from the initial joint production of carbon and teel (the war raw material) to new area, teering the integration proce toward a full economic union. 1 Here retriction on power i referred to the check and balance ytem limiting the executive power within the liberal democracy ytem, preerving them from poible authoritarian deviation celebrating the 60 th anniverary of the Treatie of Rome we want to take thi hitoric miletone of our common modern hitory a a privileged opportunity for a tock-taking exercie, to evaluate what European integration ha achieved o far. We bear in our brand name the trong attachment at thi European project, we fully endore it and we deeply cherih what it tand for. We believe the advantage of EU memberhip and the uccee of European integration outweigh by far it current challenge and even it mitake. We believe that political and economic ucce can be achieved only together. We truly believe that with the European project we have built together a world which, depite it imperfection, i till the bet of world and we are ready to prove thi every ingle day and we deem thi exercie of remembering the hared uccee we have enjoyed together o far all the more important at thi critical juncture, with the Brexit negotiation looming on u and a new geopolitical landcape re-deigning the global power game and it phere of influence, a time where ome of the fundamental principle that have o far underpinned our properity and our liberal democracie have been under quetion. Therefore, you will find in the following page a election of uccee from the EU hitory, accompanied by quote that great European leader hared with The European Houe Ambroetti and by relevant fact and figure we elaborated from public data ource, ubtantiating their value. We deem very important to remind thee achievement, becaue today we often lack the will and the time for a more profound diagnoi of the greater rik we face, that of the diintegration of Europe in a political and ideological ene. And it i no coincidence that very often thoe who call for the break-up of the European Union and thoe who quetion liberal democracy are the ame one. We definitely believe there mut be a better coure than to return to the dark day of diviive wall, border pot and mutual upicion acro our continent and that depite inufficient growth and employment, ecurity threat, geopolitical intability and the riing populim, the EU remain a unique and the mot ucceful political and economic project in modern time, which ha accomplihed remarkable achievement and i the bet promie to keep delivering on the value it tand for. 1

2 PEACE Europe ha enjoyed even decade of peace and tability, an enormou achievement which hould not be taken for granted. The EU rendered war unconceivable amongt it member and that thi achievement took place in a region hitorically ravaged and plit by war make it all the more remarkable. The idea wa firt conceived by Robert Schuman, the French foreign miniter in 1950, to make war not only unthinkable but materially impoible. EU Leader quote The European Union wa ucceful in making peace and political democracy irreverible and in providing properity. The EU howed it oft power in contributing to bring down communim and dictatorhip in Central and Eatern Europe in a peaceful way. Hitory houldn t be tragic! Herman Van Rompuy Preident Emeritu of the European Council Preident of the European Council, Sixty year after the Treaty of Rome wa igned in 1957, we have firm reaon to proudly commemorate the birth of the European community and the ubequent achievement of the European Union. We hould not forget that the key trategic viion the Founding Father had for the European Union wa to achieve the political goal of peace through economic integration. To thi end, we have een unparalleled ucce: in the pat ixty year no war have arien between member of the European Community or Wetern Europe more broadly. While NATO ha certainly played a very important part in guaranteeing our ecurity, it i only fair to recognize the crucial role the European Union ha played in achieving thi goal. A et out in the Schuman declaration in May 1950, between European countrie war i not only unthinkable but materially impoible. There i no price for thi vital protection the European Union ha given to our citizen. Peronally, I will never forget the moment in Olo in 2012 when myelf and colleague from the European Council and Parliament received the Nobel Peace Prize on behalf of the EU for over ix decade contributed to the advancement of peace and reconciliation, democracy and human right in Europe. In my mind, receiving one of the mot pretigiou award of our time confirmed how relevant the European Union ha become a a guarantor for peace. Joé Manuel Barroo Preident of the European Commiion, The mot relevant and enduring ucce of the EU i the peace we enjoy in it territory ince the end of WW2. The integration proce et in motion by the founding father of the EU eradicated war between our countrie. An integrated Europe i the bet alternative to aggreive nationalim and the neceary condition for the economic recontruction of the continent. Joaquín Almunia European Commiioner, We look back on peace for even decade and an enlarged union of 500 million citizen living in freedom in one of the world mot properou economie. Europe founding father (no mother at that time) choe to unite the continent and their leaderhip, a huge effort. We owe them to continue in their pirit. Neelie Kroe European Commiioner, year of peace ince the end of WWII, the longet period of peace and tability in the European hitory. EU28 i the leading region in the world contributing to the UN total budget. 2% 3% 4% 8% UN budget contribution by country ( ) 10% 30% 21% 22% EU 28 United State Other Countrie Japan China Brazil Ruia Autralia Source: The European Houe - Ambroetti on UN data, 2015 In a global context with more than 40 ongoing armed conflict, the EU i the larget contributor of contingent to United Nation peace-keeping miion. For it contribution to the advancement of peace and reconciliation, democracy, and human right in Europe and for helping tranform mot of Europe from being a continent of war to becoming a continent of peace, the EU wa awarded the Nobel Peace Prize in LIBERAL DEMOCRACY AND HUMAN RIGHTS The EU et tandard of human right, democracy and the rule of law. In practical term uch guideline have had a particular impact on the countrie which joined after they emerged from dictatorhip, with often underdeveloped civil ocietie: the European project enured democracy in Greece, Spain and Portugal after their dictatorhip. It provided an anchor for the countrie emerging from Soviet dictatorhip. It provide (till) the bai for tability in the Balkan: the ambition to join the EU i what retrain detructive nationalim in Serbia and the Serbia/Koovo Agreement, brokered by the EU, till hold. The European project ha been for ix decade a pillar of rule-baed, democratic, liberal market internationalim and human right. 2

3 EU Leader quote We are a Union of value. The Union i completely different from the European countrie before the lat war, alo far away of aggreive nationalim, colonialim and imperialim. We changed the nature of the European nation and nation. But there are no acqui in hitory. Poitive value are alway fragile. We till need trong conviction and intitution to protect them. Herman Van Rompuy Preident Emeritu of the European Council Preident of the European Council, We hould not forget that the European Union a well a an economic union i alo a Union of value. We hould therefore be proud of the contribution the EU ha made in advancing value uch a repect for human dignity, freedom, democracy, equality, the rule of law and repect for human right, a expreed in Article 2 of the Libon Treaty. Thee value have been conolidated in Europe between member and promoted to the wider world. And, indeed, the increaed role of the European Union in global governance - marked by it importance a an international actor in etting like the UN, G7 or G20 how that it i poible, while deepening and enlarging our Union, to alo make progre in external action. Hopefully our citizen upport thee development made by the EU and recognize them a not only the bet way to defend their interet, but to promote their value in an increaingly complex and inter-connected global order. Joé Manuel Barroo Preident of the European Commiion, Together with peace, democracy and freedom are the other eential building block of our ocietie. The EU ha played a key role to attract countrie undergoing dictatorhip toward a democratic ytem, helping thoe ocietie to conolidate their freedom and offering a template of reform to build the new intitutional, legal and political framework. Joaquín Almunia European Commiioner, The EU i the larget union of democracie in the world. In 1957 only 12 of today EU member tate were democracie. Now they are 28 (till conidering the UK a a member of the EU). Every European citizen ha the right to vote and tand a candidate in the election to the European Parliament and to local municipal election, whatever her/hi nationality and in whichever member tate her/he reide in. Individual freedom are protected by the Charter of Fundamental Right and include repect for the private life, freedom of thought, religion, aembly, expreion and information. EU member tate repreent half of all free countrie in the world 2. Freedom in the world (2017) Free Partly free Not free Source: The European Houe - Ambroetti on UN data, 2015 SINGLE MARKET AND ITS FREEDOMS The ingle market i probably the EU ingle bigget achievement after peace and liberal democracy, though it arguably hard to eparate them. It guarantee the free movement of people, good, ervice and capital (and hopefully, very oon, of data a well), making the EU a unique territory of freedom. The Delor ingle market programme particularly uhered in an extended period of liberalization of network indutrie and ervice and contributed to the interconnectedne of the EU and the ability of individual member tate to leverage the large internal market. The European project eliminated debilitating border obtacle all over Europe and a European we are now free to live, tudy, work and retire anywhere in Europe. Although ome border control have been reintated in the wake of the refugee crii and terrorit attack, the Schengen Area agreement, a unique zone of paport-free, borderle travel that cover over 400 million people even beyond the EU, i till in place. Trade barrier and phyical cutom control which made trade in good cotly and unpredictable have been abolihed; national rule that prevented companie trading acro border have been harmonized, or are now recognized by other EU countrie; public procurement rule that may favor certain player were changed o that companie, epecially mall and medium one, can bid for contract anywhere in the EU; moving, and even more reiding and looking for work in another country in Europe i not anymore a bureaucratic nightmare; many barrier to trade in the ervice ector have been lifted, allowing companie to provide cro-border ervice without prior authorization. Driving licene are valid acro the continent, while the ingle currency, tandardized train and the fact that holidaymaker are fully covered for emergency hopital treatment in other EU countrie have all encouraged freedom of movement. 2 A reported in Freedom in the World, the firt and bet ource available on the tate of political and civil right and the tate of democracy and human freedom around the world. It the Freedom Houe annual report aeing the condition of political right and civil libertie around the world. The report ha been publihed ince 1973, allowing Freedom Houe to track global trend in freedom over more than 40 year. It ha become the mot widely read and cited report of it kind. 3

4 Beyond the unifying effect of thi et-up on European citizen, the Single Market ha provided acro the union a wide range of competitively-priced ervice and good and higher health, afety and environmental tandard. In fact all product available within the Single Market are required to be afe, meeting certain tandard, technical pecification and conumer expectation. Thi ha helped tackle variou health and afety rik and improved product afety. Over the pat 20 year, a ubtantial et of law protecting conumer ha been developed, known in EU term a the conumer acqui, involving among other the following right for conumer: protection againt unfair term when making a contract with a retailer; better information, advertiing and other commercial practice directed toward conumer; right of withdrawal extended to contract concluded at a ditance, e.g. by telephone, mail order or via the Internet. EU buine have been benefiting from a home market of over 500 million conumer for their product, eaier acce to a wide range of upplier and conumer, lower unit cot and greater commercial opportunitie. EU Leader quote Achieving a deep and efficient ingle market i a key factor for determining the EU overall macroeconomic performance. It i particularly crucial for the olidity of the euro and for monetary union to deliver the promied economic benefit. Mario Monti European Commioner, The way toward a fully-fledged ingle market, the Economic and Monetary Union and the External and Security policy of the EU are a work in progre. But the gradual and ucceive tep toward an ever cloer union, ince the ignature of the Treaty of Rome until now, demontrate that the elimination of internal barrier and the cooperation between countrie that fought againt each other over centurie i the bet way to build a decent and fair ociety. Without the exitence of the EU, I cannot imagine how the emergence of the European Welfare State could have been poible. Joaquín Almunia European Commiioner, The Single Market booted intra-european trade, which ha increaed by 17,7% ince the 1995 Delor White Paper. EU trade evolution (exp.+ imp. a a % of GDP, ) Intra EU trade Extra EU trade +17,7 p.p. +10,3 p.p. ha decreaed by 73% between 2005 and the firt half of 2017 and roaming charge have now been abolihed altogether ince the 15 June Before 1987, Europe aviation market were protected and fragmented. Step by tep, the EU liberalized the ector and created a Single Market for air tranport, which allowed new entrant to operate in the EU with new buine model, uch a low cot carrier, changing the travel habit of many European. Since 1993, the number of intra-eu route ha more than doubled and there ha been a 150% increae in long-haul flight departing from EU airport. Paenger have a greater choice of detination and the convenience of more direct flight. More citie and region are now erved by air tranport. Competition within the EU ha trongly increaed and a a conequence, paenger have more choice and price have fallen harply. Flight are alo afer a a reult of tightened regulation and improvement in air traffic control. Buinee benefit from EU harmonization aiming to provide a clear and predictable legal framework within the ingle market: chemical companie are governed by EU-wide tandard on regitering and controlling chemical ubtance, for example, while implified value-added tax rule enable mall buinee to pay VAT in their home country rather than in countrie where they ell. Toy, contruction equipment and a hot of other product are alo ubject to EU-wide norm and tandard. Eramu ha been the world mot ucceful tudent mobility programme. Since it launch in 1987 until 2014, it allowed almot 3.5 million people to tudy, train, volunteer or gain profeional experience abroad. Growth in tudent mobility ince the tart of Eramu Program ( ) 3 Million Million 2 Million Source: The European Houe Ambroetti on European Commiion data, ,6 million of European citizen living in another EU Member State and 6.5 million European are currently working in another EU Member State. Share of European living in another Member State (2011) 22,7% 40,4% 14,7% 25,0% Source: The European Houe Ambroetti on UNCTADSTAT data, 2017 Thank to the Single Market a number of product and ervice are now cheaper. For intance the cot of making and receiving a call when abroad Source: The European Houe - Ambroetti on Eurotat, UN data, 2017

5 EURO The Euro i the mot tangible proof of European integration: a common currency in 19 out of 27+ EU countrie and ued by ome million people every day. Beyond it economic dimenion, the Euro i a powerful ymbol of European unity, identity and cooperation. The Eurozone wa etablihed in 1999 and, depite the ignificant threat faced in recent year, it i likely to remain a central part of the European project and of European everyday life. By 2020 there will be a new generation of young adult who will have grown up uing only the Euro a their national currency. The launch of the Euro booted the European economic and monetary union, involving a common monetary policy, an independent European Central Bank and the cloer and cloer coordination of economic and fical policie, with common rule on public finance. The introduction of the Euro, together with the EU policy in the area of financial ervice, ha facilitated the European financial integration. Before the outbreak of the economic crii in 2007, the integration of capital market began to deliver the expected benefit of a deciive reduction in the cot of capital for both invetor and conumer: bank loan interet rate fell and converged; government bond yield decreaed and converged; firm began to how a preference for market-baed financing, particularly through bond, over bank borrowing. The financial crii of coure lowed thi proce. While mot European ee the benefit the Euro bring to them a traveler, not having to convert money while away on holiday or buine, one ha to recognize that it main practical benefit ha to do with economic reilience and utainable growth: the Euro ha helped deciively to dicipline public finance in everal countrie, to trengthen the EU international tanding and to improve the integration within the union itelf. EU Leader quote The Euro i the ingle currency of 330 million people and enjoy a high degree of confidence among invetor and aver becaue it ha delivered price tability remarkably well. Jean-Claude Trichet Preident of the European Central Bank, The Euro i now the mot important currency in the world after the US dollar and there i no other example worldwide of uch deep and large-cale monetary cooperation between overeign countrie. Interet rate in the Euro Area have been gradually decreaing ince the Maatricht Treaty (-8,9 percentage point between 1992 and 2016). 14% 12% 10% 8% 6% 4% 2% 0% Long-term interet rate ( ) France Germany Italy Spain United Kingdom Euro area (19 countrie) Source: The European Houe - Ambroetti on Eurotat data, 2017 The Euro brought about price and exchange rate tability; lower and convergent inflation rate; the elimination of exchange rik and tranaction cot for currency exchange among it member. In particular, while in the 1970 and 1980, many EU countrie had very high inflation rate, reaching 20% or more in ome cae, inflation fell a they tarted preparing for the Euro and, ince the it formal introduction, it ha remained at around 2% in the Euro Area: the European Central Bank ha conitently enured price tability in the Euro Area, thu better protecting citizen purchaing power. The Euro promoted price tranparency for conumer, competition and improved cro border trade for corporate. In particular, it ha made cro-border hopping and price comparion, including for online purchae, much eaier and more tranparent, thu booting competition and keeping price down for the EU conumer. Trade within the Eurozone ha grown by more than 15% thank to the Euro. Moreover the eae of trading with a larger and eamle market booted trade with non-eu countrie a well. Since 2002 the Euro ha been conitently above the parity with the US dollar. Over 175 million people worldwide ue currencie which are pegged to the Euro. The Euro i the econd mot important global reerve currency, with almot 1.5 trillion Euro held by central bank worldwide. PROSPERITY AND SUSTAINABLE DEVELOPMENT The cutom union for the free circulation of good that the Rome Treatie et up, now include free movement of people, capital, and ervice, with living and working condition that have improved in way the treaty ignatorie may even not have imagined. The participation in the European project ha generated increaing and hared properity and provided a olid bai for economic growth both in Wetern Europe, particularly in economie uch a Ireland and Portugal that had been lagging behind, and in Eatern Europe (Poland, Etonia, Latvia, etc.). Europe labor productivity grew trongly in the 1950, 60, and 70, catching up and overtaking that of the US. 5

6 The initial Treaty of Rome countrie overtook the US in the late By the early 1990, the entire EU, then compriing 15 nation, wa ahead. The trend ubequently turned when US productivity, particularly in ervice, accelerated from the late 1990, leaving Europe behind. Since the financial crii, labor productivity growth ha been imilarly weak on both ide of the Atlantic, depreing properity advance and tirring a debate a to whether advanced economie more generally are in a phae of ecular tagnation 3. From an invetor perpective, while the United State ha the larget and mot liquid capital market in the world, Wetern European bond have poted higher total inflation-adjuted return in the pat half century than US bond (4,4% v. 2,5%), while the return on Wetern European and US tock ha been imilar, at around 5,7%. Social welfare provide an even more compelling indicator of the EU ucce, which ha been a powerful engine for trong ocial progre over the pat ix decade. The EU a a whole core trongly acro a range of ocial indicator, like equal opportunity, quality of health care and education, environmental protection, public afety, ocial protection and work-life balance. The EU ha demontrated that environmental utainability and economic growth can go hand in hand. EU Leader quote The European Union ha alo made very important contribution toward properity, utainable growth and economic coheion. In thi, Europe ha not only attained level of unprecedented economic wellbeing a well a ocial and cultural development but it ha alo contributed to the economic convergence of it member. A a Portuguee citizen, I can only ay how deciive Portugal acceion to the EU in June 1986 wa to the ocial and economic development of my country. We can alo ee thi in other outhern European countrie and, more recently, in central and eatern member tate that are benefiting from European olidarity in uch an impreive way. Our ambition for growth ha alo been marked by our pioneering effort toward utainability. I am proud that it wa the European Union and, more pecifically, the European Commiion l had the privilege to lead that launched the mot ambitiou project againt climate change. The EU climate and energy package et unprecedented target for greenhoue ga reduction. Thi project ha ince proved the origin of effort by the global community to prevent one of the mot challenging and threatening problem we face. Joé Manuel Barroo Preident of the European Commiion, Lawrence H. Summer, The age of ecular tagnation: What it i and what to do about it, Foreign Affair, March/April From 1900 to 1950 per capita GDP increaed 1,5 time in EU5 and 2,3 time in US. After the Rome Treatie got igned in 1957, per capita GDP growth rate tarted to increae at a higher pace than before and between 1960 and 2010 per capita GDP increaed 3,0 time in EU5 againt 2,7 time in the US. GDP per capita almot doubled over the pat 20 year capita GDP per capita (1900=100; ) EU 5 CAGR: 0,8% United State (1960=100; ) GDP per EU 5 CAGR: 2,2% United State x 2,3 x 1,5 x 3,0 x 2,7 Note: EU 5 refer to: France, Germany, Italy, Spain and United Kingdom Source: The European Houe - Ambroetti on Clio Infra data, 2017 Europe economy GDP per capita performed olidly compared with the United State until Europe double-dip receion after The increae in GDP per capita ha been over tenfold for ome of the pooret EU member. EU employment rate currently tand at an almot all-time high of more than 70%. 10 million job have been created between January 2013 and September The EU inveted more in renewable than any other energy ource between 2010 and 2015 and ha today 3 time more renewable power intalled per peron than the world average. Since 1972 when the firt European environmental policy wa launched, the EU ha tackled the problem of acid rain and thinning of the ozone layer. European citie have today among the lowet air pollution level worldwide, largely thank to early ban on pollutant uch a lead in petrol. The EU continue to uccefully decouple it economic growth from it emiion. For intance, during the time period, the EU combined GDP grew by 87%, while ulphur oxide emiion have fallen by -89% and greenhoue ga emiion emiion have fallen by -22% in the ame period. 6

7 SOx ga emiion and GDP (1990=100); Sox emiion GDP Greenhoue ga emiion and GDP (1990=100); Greenhoue emiion GDP Source: The European Houe - Ambroetti on Eurotat and World Bank data, % -89% +87% - 22% Wate recycling in Europe municipalitie ha increaed from 30% in 2004 to 43% in % of European beache are clean enough to wim at and 85% received the excellence label. In more than 10 countrie EU funding account for more than 40% of total public invetment. RESEARCH & INNOVATION AND EQUAL OPPORTUNITY BASED SOCIETY European Reearch and more pecifically the creation of a European Reearch Area, have been increaingly high on the policy agenda in Europe, acknowledging that Member State on their own were finding it more and more difficult to be active and play a leading role in the many important area of cientific and technological advance. Conducting European reearch policie and implementing European reearch programme ha been introduced a a legal and political obligation by the Amterdam Treaty and the EU i today a world leader in reearch and innovation a the way to tay competitive and improve properity. The contribution to thi ucce ha been increaingly enured by the increaing participation of women to the tertiary education, high level reearch and to the workforce. The EU ha tackled dicrimination on the bai of gender, race, age and diability with a range of different directive which have had their bigget impact on the labor market. The European project ha been baed on the principle of non-dicrimination from the beginning and the equality between women and men i one of it founding value, with the principle of equal pay for equal work rooted in the Treaty of Rome. EU Leader quote Our action mut alway reflect European value of openne and diverity, if we are eriou about uing European reearch and innovation for omething greater than our own gain. We have to embrace change try new thing and be willing to take rik if we want European reearch and innovation to remain at the forefront of modernity and economic growth. Carlo Moeda European Commiioner for Reearch, Science and Innovation The impact of new technologie on ociety and job, on globaliation, on ecurity concern and on the rie of populim, i an extra reaon to act. EU27 i focuing on delivering more and fater in elected policy area. New family tructure, a changing population, maive urbaniation and more divere working live are affecting a lot of iue. That and taking into account the average European worker no longer ha a job for life (it i more like having ten in a career) and there are more women in work (more than ever before; achieving gender equality will mean breaking down periting barrier) i forcing u to act. Without heitation thoe iue can only be olved in a broader cene. The European. Neelie Kroe European Commiioner, The EU i reponible for 1/4 of global expenditure on R&D and for 1/3 of global patent application. Since the very firt Framework Programme for R&D in 1984, the EU inveted about 200 billion, funding reearch, new technologie and innovation that improve our live. Horizon 2020, the current 8 th Framework Programme, i the bigget multinational reearch programme in the world. Scientit, economit, author, doctor, artit, activit form the EU have won the greatet number of Nobel Prize in hitory. Marie Sklodowka-Curie Action between have a 6.2 billion budget, upporting reearcher from 140+ different nationalitie (among whom 38% are female). The funding for the ERC (European Reearch Council) increaed from 300 million in 2007 to 1757 million in The gender pay gap ha been narrowed down to 16%. There are today more women graduating from European univeritie than men. European women have the world highet average core in the Peronal Freedom Index. 7

8 LEADING IN INTERNATIONAL TRADE AND DEVELOPMENT COOPERATION The EU i the mot important trade actor in the world a well a the larget provider of development, technical and humanitarian aitance. The EU trade policy ha been contantly working to create a global ytem for fair and open trade, to open up market with key partner countrie, to make ure EU trade partner play by the rule and to enure trade i a force for utainable development. The EU development policy i a cornertone of EU relation with the outide world and contribute to the objective of EU external action, alongide foreign, ecurity and trade policy. It foter the utainable growth of developing countrie, with the primary aim of eradicating poverty. Total export of the EU 27 are worth about 5.8 trillion and repreent over 1/3 of total global export, more than 2,5 time China export and over 3 time thoe of the US. EU i the top trading partner for 80 countrie in the world. EU i the world larget ource and detination of FDI. In particular, EU i the world larget ource of FDI, accounting for 32,2% of the world outward FDI (which equal million US$) and repreent 32,8% of worldwide FDI inflow, being the mot choen region for invetment. EU and it Member State are the world leading aid donor, accounting for more than half of all global aid, a reported by the OECD Development Aitance Committee. 32,2% CLOSING 21,6% European Union United State Share of worldwide FDI flow (2016) Outward 14,7% China 32,8% Inward 22,3% Source: The European Houe - Ambroetti on OCED data, ,6% European Union United State China We hould draw inpiration from what Giueppe Mazzini wrote, more than 160 year ago, about the contitution of the Giovine Europa, tating that European nation hould become, with time, a vat common market in which none of the member find retriction on their individual development, without however creating difficultie for other development [ ]. With the common conent of it population, Europe i advancing toward a new era, a union [ ] in which all will bring their contribution to a common venture, whoe fruit are detined to expand and render everyone live afer. [ ] The League wa founded for a peace baed on right and guaranteed by jutice [ ] o that every man i given the opportunity to operate in the field in which hi energie can bet be employed for the community [ ] for a contant exchange of idea and acquaintance to the advantage of all countrie and for the liberty of trade, that exchange of natural and indutrial product without retriction that, alone, can atify the material need of the population. The European Houe-Ambroetti Club Lettera draw on the analyi, thee and olution developed a part of Club activitie and, more generally, the profeional activity of The European Houe- Ambroetti Group. We are aware that we offer an obervatory of information and relation network, including on an international level, that i extremely high-level, but at the ame time we are cognizant of the fact that we are not the ole repoitorie of truth. In order to be of aitance to Italy and Europe one of our key commitment we incerely hope that each Lettera will provide the bai for a large number of critical uggetion, both in term of content and more generally, from thoe who receive it. Pleae end your uggetion and comment to letteraclub@ambroetti.eu. We thank you in advance for your invaluable collaboration. If you are intereted in the activitie of Ambroetti Club, pleae contact Silvia Lovati by at club@ambroetti.eu or call YEAR II NUMBER 4 Lettera Club The European Houe Ambroetti, 2017 All right reerved. EDITOR-IN-CHIEF: Nino Ciravegna Printing: TFM - Via San Pio da Petralcina, 15/ Pogliano Milanee EDITORIAL OFFICES: The European Houe Ambroetti S.p.A. Via F. Albani, Milan Tel Fax For information: letteraclub@ambroetti.eu 8