(March 10, 2011) Cooperation between the European Union and the United States can only help the two entities deal with similar global economic problems, the E.U. ambassador told a California Chamber of Commerce audience yesterday.

E.U. Ambassador to the United States João Vale de Almeida presented his perspectives on E.U. relations with the U.S. in response to questions from CalChamber President and CEO Allan Zaremberg and other audience members at the CalChamber-hosted International Luncheon Forum. 

Economic Competition

The ambassador commented that as older industrialized societies, the E.U. and the U.S. face competition from the economic emergence of other countries around the world.

European Union Ambassador João Vale de Almeida(right) at the CalChamber International Luncheon Forum with CalChamber President and CEO Allan Zaremberg. Photo by Megan Wood

On one hand, he said, this might provide a challenge to E.U. and U.S. companies due to other countries’ low manufacturing and labor costs. More important, however, is that the rise of other economies will open new markets, create new consumers and lead to democratization, he said.

“The rising of countries like China, Brazil, India and others is a good thing. This means millions of people coming out of poverty…and millions of people becoming consumers,” said Ambassador Vale de Almeida.

But he also warned that these emerging countries will have to share the responsibilities of other world powers and ensure that the rule of law is preserved, markets are open to all and intellectual property is safeguarded.

Debt/Entitlement

Another area of commonality is the problem of rising debts and entitlement costs. The E.U. recently had to take emergency measures to rescue its own member-states Greece and Ireland from economic collapse. The ambassador said that Western countries are going to have to make the difficult reforms of entitlements such as pensions, like the E.U. is doing now, because the status quo will not work.

“We need to make reforms, very tough, very difficult ones. You will go on seeing demonstrations in European capitals,” stated the ambassador. “People are angry; I understand. People feel that these are their entitlements; I understand that as well. But the question is simple—either we solve it now or our grandchildren will have a bigger problem.”

North Africa

In regards to the political unrest in North Africa, Ambassador Vale de Almeida said he was happy with the overall trend of the people striving for more freedoms and democracy. “These people are trying to join our camp,” he commented. However, he condemned the use of violence by all sides.

The E.U. and the U.S. must continue to cooperate in dealing with the situation, especially in preventing countries like Libya from becoming a failed-state, he said.

Staff Contact: Susanne Stirling