*{Europe: Reading into the Future [http://www.weforum.org/site/knowledgenavigator.nsf/Content/Europe%3A%20Reading%20into%20the%20Future?open&topic_id=300350000&theme_id=300]

            01.07.2001

            European Economic Summit 2001}

            Leaders in the region must work to build a European consciousness to boost public support among citizens for European integration, stated Poland’s President Alexander Kwasniewski at the opening plenary session. Hungarian-born financier George Soros, Chairman of Soros Fund Management, USA, and Co-Chair of the Summit, echoed the Polish leader’s call. “Economic integration has to continue,” he told participants. “But there is a question of how to overcome a democratic deficit. People feel alienated from the European Union.” Soros argued that it is necessary to convince citizens of the desirability of EU expansion.

            In his impassioned remarks, Kwasniewski said Europe is beset by a paradox. At the same time that Eastern Europe is undergoing unprecedented political and economic transformation and economic integration of the continent is moving forward, these developments are not widely welcomed by the public. The mechanism for accession to the EU must be transparent. He added that it is important for Europe to renew its transatlantic links even as it forges a new identity. Finally, he encouraged participants to “be visionaries – have your dreams, but also be pragmatic so you can realize them.” 

            Percy Barnevik, Chairman, Investor AB, Sweden, and Summit Co-Chair, told participants that the Baltics would become one of the fastest growing regions in Europe, a vital link between East and West. He stressed the importance of growing intra-regional trade. “The investment climate is the key to everything,” he added, noting that improving the attractiveness of the region would prevent capital flight and encourage investors to introduce new technology and management methods. New infrastructure such as rail connections between key cities would also boost economic integration.

            For his part, Sergei V. Kirienko, Presidential Plenipotentiary of the Volga Federal District, Russian Federation, contended that it is necessary to create a new European security system. There are three options, he said. First, NATO could be dismantled and replaced by a new organization. Second, Russia could join NATO. And third, NATO could be left as is, while the US and Russia together create a new mechanism for the security of Europe. He argued that the American missile defence initiative is a throwback to the old arms-race days and is motivated more by economic reasons than security considerations. He said that it is crucial that the “borders in people’s minds” are eliminated. There needs to be a “convertibility of cultures” to enhance European integration.

            Speaking about South-East Europe, Soros called for the setting up of a customs union among the countries of that region to enhance its attractiveness to private investors. It is important too for countries in the region to address their past, as Belgrade has done with the recent extradition of former president Slobodan Milosevic to The Hague. If nations of South-East Europe can achieve economic progress, Soros argued, they would then be able to resolve outstanding political issues over time, “create a break from history” and prevent future conflict.

            During the question and answer period, Kwasniewski and Kirienko debated the issue of Russia’s joining NATO. Kwasniewski welcomed the prospect of Moscow’s joining if it is indeed prepared to do so. Barnevik warned that a European economic downturn might make EU expansion more difficult as a recession would make negotiations tougher. Finally, Soros recalled that “the EU was created in response to an external threat, the Soviet Union.” Now that that threat is no more, it is important to frame the EU in positive terms with the aims of enhancing economic integration and preserving European peace.

            At the start of the session, Frédéric Sicre, Managing Director, World Economic Forum, outlined new initiatives launched by the Forum, including the Bridging Europe project to encourage wide-ranging dialogue across sectors, the Readiness for the Future Index, and the mission to examine and promote corporate governance in Russia. “The Forum today is much more than a convenor of Summits,” Sicre said. “The Forum and its members are about understanding regional and global challenges. The Forum is about leaders committed to facing their regional and global responsibilities. The Forum is not the problem; it is part of the solution.” Later, session chair Klaus Schwab, Founder and President of the World Economic Forum, told participants that “we will be bringing East and West together in Salzburg to discuss the problems of an increasingly globalized Europe” and to develop “a common vision for Europe.”                 

                  *{Contributors:       Barnevik Percy
                  Kirienko Sergei V.
                  Kwasniewski Aleksander
                  Schwab Klaus
                  Sicre Frédéric
                  Soros George}