A Franco-German perspective of young diplomats
The Franco-German relations are one of the central pillars of German foreign policy - this holds true for the training of young diplomats as well. Within a workshop of the Franco-German diplomatic formation in May 2014 in Berlin mixed groups developed common propositions for Europe's future. These texts do not necessarily represent the official position of either government.
On the international market, the label "Made in EU" could become a seal of quality more than ever – not only with regard to the products, but also as far as labour conditions and environmental standards are concerned.
Economic diplomacy has become a central concern of French foreign policy, as illustrated by the transfer of the department for trade and tourism to the Ministry of Foreign Affairs.
This seems wise in a globalised world where competition between economies has become fiercer in times of financial crisis – often against countries which do not comply with the high European standards when it comes to labour conditions and environmental protection.
For Germany, economic diplomacy has been a long-held concern. Interestingly, according to a recent survey commissioned by the German Foreign Office, the German public considers that conflict resolution and the promotion of human rights are by far more important than the promotion of German economic interests abroad.
Those two viewpoints do not necessarily have to lead to conflicting interests between the two European neighbours – indeed, upholding ethical standards and promoting economic success can be jointly achieved. There is but one condition: European countries must work together.
One of the main promises of the EU has been its economic prosperity and high standards of living. Despite different approaches, we have agreed on a set of basic standards, which not only create an environment for companies to innovate and grow but also protects workers and preserves the environment.
The world today is characterised by a new complexity due to an increasing number of actors often featuring an entirely different set of values and a more strategic (and geopolitical) approach to economic foreign policy. Companies and governments face increasing pressure from new players to lower social and environmental standards. We have to resist this race to the bottom while remaining competitive in the global market.
European countries, meanwhile, find themselves between a rock and a hard place. Lowering social and environmental standards to make European companies more competitive against companies from emerging powers would amount to going back several steps in the history of the EU as a normative power.
As far as France and Germany are concerned, it is becoming evident that it is impossible for a member state to defend European standards on its own in the face of the increasing global competition. Being norm-abiding, however, does not mean being naive. The challenge is to translate the respect of norms by companies based in Europe into economic benefits for these companies and states.
The EU should build a clear economic strategy to be a stronger and more consistent economic actor. To achieve this goal, it should insist on common standards while negotiating with third countries. It should also ensure the application of these standards – such as OECD guidelines and UN global compact. Examples of these standards include the prohibition of child and forced labour, fight against corruption and the right to unionise.
One way of doing this would be for the EU to provide a better coordination between the national mechanisms of export guarantees (COFACE, Hermes) and connect them through a European agency, which would ensure that these standards are implemented, e.g. by coupling interest rates on granted loans to standard abiding behaviour of firms. These loans could be funneled to support the EU strategy for sustainable growth.
To establish a level playing field between European companies and companies from third countries doing business in Europe, the EU could link market access to public procurement to adherence to standards. Even more importantly, the EU should use bilateral free trade and investment treaties more efficiently as an instrument to promote standards. The Transatlantic Trade and Investment Partnership will be a perfect stress test for this.
Europe should feel confident in upholding its high standards while at the same time maintaining and strengthening its economic power and influence in the global economy. On the international market, the label “Made in EU” could become a seal of quality more than ever – not only with regard to the products, but also as far as labour conditions and environmental standards are concerned. The German French Couple - as it has been throughout the history of European integration - can be the initiator of this joint European ambition.
