LSE Public Lecture: Reforming Europe in a Changing World

Date: 14 February 2014
Speaker: José Manuel Barroso (President of the European Commission)
Host: LSE Film and Audio Team / Peter Sutherland
Podcast Series: LSE: Public Lectures and Events

Overview

This lecture, delivered by European Commission President José Manuel Barroso at the London School of Economics, addresses the urgent topic of reforming the European Union in the face of global shifts and internal challenges. Barroso reflects on the EU’s evolution, the impact of globalization, the aftermath of the financial crisis, the debate over Britain’s role in Europe, and the essential principles underpinning the European project. The session is marked by an engaging Q&A, focusing on European integration, freedom of movement, Ukraine, and the future of the Union.

Key Discussion Points & Insights

1. Europe’s Evolution and Need for Reform

(Full speech: [02:08]–[36:46])

• Globalization and EU Adaptability:
  Barroso emphasizes that the EU must “constantly change in order to manage and make the most of globalization” ([03:05]). He stresses that adaptation is not only for businesses but also for governments, universities, citizens, and the EU itself.

• Governance Challenges:
  Modern problems like climate change, energy, and financial interdependency require responses “that cannot be dealt with at national level alone” ([05:32]).
  “Size matters more than ever, critical mass matters. An enlarged European Union of 28 member states has more impact than any of its member states do individually.” ([06:15])

• Historical Perspective:
  Barroso recounts the transformation of the EU from a cozy club of 12 to a global force of 28, highlighting how “the outside world… respect[s] much more a European Union of continental size” ([07:07]).

2. The Financial Crisis: Response, Myths, and Lessons

([12:45]–[27:15])

• Debunking Myths:
  Barroso rejects the narrative that the euro or European integration caused the financial crisis.
  “The financial economic crisis was not a result of European integration… In some countries, the turmoil was the result of irresponsible practices… in others, a lack of competitiveness due to delayed or half-hearted reforms.” ([13:26])

• EU’s Role in Crisis Management:
  He praises European solidarity:
  “Thanks to European solidarity that we could help the most vulnerable countries inside and outside of Eurozone…it was thanks to European resolve that we could forestall a cycle of protectionism and kept markets open…” ([16:44])

• Structural Reforms and Integration:
  Major reforms discussed include financial regulation, economic governance, and new mechanisms like the European Stability Mechanism and banking union.
  “We are now creating new instruments that before the crisis were not available because member states simply did not want the European Union to have these responsibilities.” ([19:58])

• Outcomes:
  Several member states (Latvia, Ireland, Spain, Greece, Portugal) have seen positive economic turnaround attributed to reforms and EU assistance ([21:50]).

3. The Single Market and European Freedoms

([29:20]–[35:55])

• Pragmatic Regulation and Market Reforms:
  Barroso recounts efforts to cut red tape and focus regulation where it truly adds value, e.g.:
  “We no longer have unnecessarily complex rules on fruit and vegetable standards. So you will already have seen you can buy cucumbers in all the shapes and sizes you may wish.” ([30:49])

• Trade and Growth:
  He highlights EU’s role as a “biggest trade player in the world,” advances in the WTO, and the Transatlantic Trade and Investment Partnership, potentially worth £10 billion a year to the UK ([32:36]).

• Defending Four Freedoms:
  Barroso stands firm on the indivisibility of goods, services, capital, and people:
  “We need all four of them. There is a balance here… You cannot have a single market without free movement of European citizens.” ([34:33])

• On Free Movement:
  He acknowledges local strains and abuse, but insists on the principle: “There must be no first and second class citizens in Europe where only the high skilled are able to move and work freely while the low skilled are not.” ([35:14])

4. The UK’s Role and the Case for Engagement

([35:55]–[36:46])

• A Call for Constructive British Engagement:
  “If you don’t like Europe as it is, improve it… Find ways to make Europe stronger, internal and internationally. And you will have in me the firmest of supporters.” ([36:16])

• The British Question:
  “My very personal, very strong conviction is that the European Union is better off with the UK and that the UK is better off in the European Union.” ([36:37])

Notable Quotes & Memorable Moments

“Europe may not be the most romantic subject, but it certainly stirs up real passion and it does merit real debate.”
— José Manuel Barroso ([02:50])

“Size matters more than ever…. When I compare the way the United States, Russia, China, Japan, India, Brazil look at us today... they respect much more a European Union of continental size.”
— Barroso ([07:07])

“The crisis was not a result of the Euro. The crisis was the result of lack of supervision, a complete national responsibility.”
— Barroso ([15:35])

“If you don’t like Europe as it is, improve it, talk about it... you will have in me the firmest of supporters.”
— Barroso ([36:16])

On free movement:
“Can you imagine a situation where goods, capital, and services could move from New York to California, but people could not? It would be absurd.”
— Barroso ([35:02])

Audience Q&A Highlights

1. Brain Drain and Freedom of Movement

Q (Philip Angelides, [38:19]):
On “brain drain” from crisis-hit countries (e.g., Greece, Italy): how should the EU address this?

A (Barroso, [38:55]):

• Defends individual freedoms:
  “I believe the state does not own its citizens. If a citizen wants to go and study in another [country], enriching themselves, they should have that right.”
• Supports making countries attractive for return migration: “Countries have to face that as well. They have to make themselves more attractive.”
• Praises UK’s leadership in education export, wishes for more freedom of movement and of ideas ([39:45]).

2. EU’s Approach to Ukraine

Q (Julia Moravska, [41:53]):
What is the EU’s ideal case scenario for Ukraine?

A (Barroso, [42:10]):

• EU is working to prevent violence, promote dialogue and amnesty, and supports democratic election under constitutional order.
• “We are strongly supporting that movement [for closer EU ties], but at the end, it is for the Ukrainians to decide their path.”
  ([42:30])

Q (Asta Judah, [48:42]):
Will the EU offer Ukraine membership?

A (Barroso, [49:15]):

• “At this moment, we cannot offer realistically a prospect of accession to Ukraine and other countries, let’s say, in the immediate future. But we have already stated very clearly that we believe the future of Ukraine is in Europe.” ([49:46])

3. Swiss Referendum and Freedom of Movement

Q ([44:04]):
On the recent Swiss referendum restricting freedom of movement.

A (Barroso, [44:35]):

• Respect for Switzerland’s democratic result, but clear:
  “It is not fair that we offer that privilege to our Swiss friends and they don’t offer the same to EU citizens… We cannot accept discrimination.”
  ([45:00])

4. Future Enlargement: Balkans, Kosovo, Bosnia

Q (Nikolay Nikolov, [51:31]):
Path to integration for Balkan states.

A (Barroso, [51:42]):

• Balkan countries, if they fulfill criteria, can expect a “realistic perspective in the not long term” of joining the EU.
  He cites progress with Montenegro, Serbia, Albania, and recent accession of Croatia ([52:12]).

5. The Eurozone Crisis and the Prospect of Debt Mutualization

Q (Tony Giddens, [53:13]):
Is stabilization of the euro possible without mutualization of debt? Will Germany accept it?

A (Barroso, [54:07]):

• “I have not said that the crisis is over… the existential crisis, the doubts about Europe—this I believe is over.”
• Predicts that mutualization remains on the agenda:
  “Neutralization is something that Germany will not say no to at a later stage… But what they don’t want now is to assume mutualization as a way for other countries to avoid necessary reforms—they want to do it step by step.” ([56:28])
• Notes all steps have been toward “more integration, not less,” referencing the two-pack, six-pack, banking union, and conferral of new powers ([59:32]).

6. Political Direction of the Commission; Liberalism and Integration

Q ([62:05]):
Will the next Commission remain liberal or shift under political pressures?

A (Barroso, [63:12]):

• The “liberal” character is institutional, given Commission’s roles in competition, trade, and economic governance.
• “If it was not for the European Commission and for the European Court of Justice, we would no longer have an internal market.”
• Predicts the Commission will remain a force for “free open societies and free and open economies,” but “would be happy if we could add a more social dimension.” ([66:49])

7. Advice to His Successor

Q ([68:49]):
What advice would Barroso give to his successor as Commission President?

A (Barroso, [69:22]):

• “Great physical resistance.”
• “Great psychological resistance…. We deserve the Nobel Prize for patience.”
• “Love Europe, to believe in these values, to think that Europe… has done so much for peace, for freedom, and for justice.” ([71:00])

Important Timestamps

• Opening and Purpose: [00:00–02:08]
• Barroso’s Lecture: [02:08–36:46]
• Q&A Session Begins: [38:11]
• Summary and Closing Remarks: [74:16–75:47]

Tone & Style

Barroso’s tone blends warmth, humor, and earnest conviction, often referencing his personal experiences and European history. The lecture is both technical—touching on regulation and economic governance—and highly accessible, with an eye to engaging young people and the general public.

Summary: For the Non-Listener

In a wide-ranging and passionate address, President José Manuel Barroso argues that the European Union is uniquely equipped to address the challenges of a rapidly changing world. He vigorously defends the European project, upholds the four freedoms of the single market, and insists that both reform and solidarity have been key to the EU’s resilience through the financial crisis. He encourages critics to engage and improve rather than disengage, especially emphasizing the need for British participation. Through candid engagement in the Q&A, he addresses enlargement, the eurozone’s future, and the need to balance integration with diversity.

The event concludes with a memorable affirmation:
“The European Union is better off with the UK, and the UK is better off in the European Union.” — José Manuel Barroso ([36:37])