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Hitachi

Hitachi Research Institute

President Column

Column by the President of Hitachi Research Institute, Mizoguchi

#12:Internal and external forces at play in the EU

I received a PET bottle at the airport in Amsterdam the other day and was unable to remove the cap. It was quite difficult to drink the water from the bottle, and for a moment I thought it was a defective product, but it was not. An EU directive instated in July requires that plastic bottles of less than 3 liters be designed so that their caps cannot be removed. The aim is to increase the rate of cap recovery and reduce marine plastic pollution.

The EU has a population of about 450 million and a GDP of over 18 trillion dollars, second only to the United States. Established after two world wars to help prevent future conflicts, the EU now functions as a community that demonstrates its political and economic presence on the global stage. Its strategic autonomy lies in its being at the forefront of introducing regulations in new sectors. Notably, in the environmental sector, the EU has proposed and adopted a variety of new rules under the Green Deal, leading the world towards achieving a circular economy. The history of the EU can be seen as a struggle between the inward force of enhancing its identity and the outward force of increasing its global presence.

Currently, Europe is in turmoil over election results. In the European Parliament elections held in June, the center-right European People's Party secured its position as the largest constituency, with pro-EU forces maintaining a majority. EU-skeptical right-wing and far-right forces, however, significantly increased their seats. In France, the far-right National Rally achieved an overwhelming victory, prompting President Emmanuel Macron to dissolve the National Assembly and hold general elections in July. Although the first round of voting anticipated a breakthrough for the National Rally, the runoff election saw the left-wing coalition emerge as the largest force with no single faction securing a majority, resulting in a hung parliament. The outcome of the parliamentary EU election is expected to have the greatest impact on climate change measures and support for Ukraine. Many on the right place less importance on environmental issues, which may slow down the Green Deal. As for support for Ukraine, factions advocating for national prioritization might reduce the scale and speed of aid to the country. The far-right's opposition to the EU represents a centrifugal force working away from the Union.

Meanwhile, in the UK general election held around the same time, the Labour Party won a landslide victory, resulting in a change of government for the first time in 14 years. This result should be seen more as a crushing setback for the Conservative Party rather than a straightforward victory for the Labour Party. While the Labour Party's share of the vote increased by only 1.6 percentage points compared to the previous election, the Conservative Party lost a substantial 20 points. The UK decided to leave the EU in a referendum held in June 2016, colloquially known as “Brexit.” Many British citizens, opposed to the increasingly bureaucratic EU, supported the Conservative Party's claim to “take back control.” However, the Conservative Party, which delivered on Brexit, failed to achieve the promised economic growth and lost voter trust. The Labour Party, led by the new Prime Minister Keir Starmer, aims to improve relations with the EU. This will likely increase centripetal forces between the UK and the EU.

Established in 1952 when the European Coal and Steel Community was organized by the six founding countries—France, Germany, Italy, the Netherlands, Belgium, and Luxembourg—the EU has since expanded and now consists of 27 member states. It has created a vast single market by facilitating the free movement of people, goods, services, and capital within the region, and by advancing a single currency and regulatory frameworks applicable to its member states, thereby increasing its global influence. The enduring struggle of finding a balance between the national interests in the region, however, continues. Disputes over economic and foreign policies between Germany and France, deviations in policy toward Russia by Hungary, decisions regarding EU membership aspirants like Turkey, responses to immigration issues, and North-South divides highlighted during the European debt crisis of 2010 are among the sources of friction. To enhance its presence as a unified entity, the EU must reinforce its solidarity, which often necessitates compromises on national sovereignty. As assertions to prioritize individual national histories, cultures, and ethnicities grow stronger, inter-state tensions are likely to increase. Nevertheless, recent opinion polls show that 74% of people within the EU identify as EU citizens, the highest level in more than two decades. Solidarity among citizens remains strong.

In his 1967 publication What is Europe?, the author Shiro Masuda observed that ”Europe dislikes standardization and is earnestly exploring ways to establish a cooperative framework that leverages regional and national characteristics, blending diverse cultural domains with a sprinkle of individuality. It is likely that Europe will continue to make this effort in the future.” More than ever, this effort is necessary. As long as the EU continues this effort, Europe will continue to have a significant presence in the world.