The US-EU relationship may be bruised but is fundamental to both sides, writes Ambassador James C. Kenny
The start of Ireland's EU presidency has been a good time for me, after three months in Ireland as American ambassador, to take stock of the relationship between the United States and the EU. It's also the time to express strong US support for one of Ireland's principal goals for the presidency, that of strengthening the "irreplaceable relationship" - to borrow from the December EU summit statement - between Europe and the US.
The bedrock of this relationship was laid during the darkest hours of the 20th century when much of Europe came close to losing the freedoms that we take for granted today. It's 57 years since the Marshall Plan dollars helped put Western Europe back on its feet, thereby enabling Monnet, Schumann and Adenauer, the great architects of post-war Europe, to launch the European project.
Since that time the US has been a steadfast supporter and a genuine partner, in the process of Europe's integration. President Bush reaffirmed this in November: "My nation welcomes the growing unity of Europe, and the world needs America and the European Union to work in common purpose for the advance of security and justice."
There have been two constants in American policy toward Europe: support for the NATO alliance and for European integration. This unshakable support continues. Reading newspaper headlines one could get the idea that disagreements outnumber the successes in the relationship.
I do not want to dismiss our differences over serious issues, but they pale next to our achievements and our shared vision of freedom, democracy and economic prosperity for our citizens and for the rest of the world.
I firmly believe that reminding ourselves of these successes can fuel the optimism and energy needed to undertake newer, bolder initiatives - together - to face the challenges of our times: ending terrorism and the proliferation of weapons of mass destruction, bringing stability to Iraq and Afghanistan, making peace in the Middle East, spurring global economic growth, and improving the health and wellbeing of all peoples.
In the words of the Secretary of State, Colin Powell, "The world's best hope for meeting these challenges still rests, in large part, on a deep, broad, and lasting partnership between Europe and the United States."
Our economic relationship grows ever closer. The scale of the $2 trillion trade and investment relationship is staggering. Transatlantic trade in 2002 totalled about $548 billion, with $12 billion between the US and Ireland in the first half of 2003. The EU sends almost a quarter of its total exports to the US, and the US sends about a third of its exports to the EU.
Almost three-quarters of all foreign direct investment (FDI) in the US comes from EU countries. In the first half of 2003 European companies put $26.3 billion new FDI into the US. More than 13 million Americans and Europeans receive their pay cheques from local affiliates of US and EU parent companies; about 90,000 Irish get their pay cheques from US subsidiaries in Ireland. I can tell you that, as a businessman, one of my top priorities as ambassador is to support business and trade between the US and Ireland.
The US is working with Europe to make it easier for transatlantic business to flourish. We are putting special emphasis on regulatory issues because, along with the reduction of tariffs and quotas, regulatory differences are the biggest impediment to transatlantic trade and investment.
The Taoiseach, Mr Ahern, has reaffirmed the Irish commitment to the Lisbon Agenda, and during its presidency Ireland will encourage growth-orientated EU policies, such as the structural reform of product, capital and labour markets, and investment in physical and human capital.
America welcomes this initiative because the US and EU need to act now to create a new transatlantic economic dynamic, which is the surest way to guarantee the prosperity of our peoples. It is what our citizens expect of us.
During the Irish presidency, the EU will change dramatically as it welcomes 10 new members. The EU at 25, with over 450 million people and one-quarter of the world's GNP, is poised to become an even greater economic force.
The relationship between the US and Europe is arguably the most important political relationship in the world. We consult with each other on almost every event and issue affecting every corner of the globe.
During the Irish presidency, we must continue to work together to ensure the successful reconstruction of Iraq, and we must find a way to create the security environment that will permit the implementation of the roadmap to peace in the Middle East.
Americans and Europeans recognise that the poverty and disease ravaging Africa are not only humanitarian issues, but also contribute to ongoing conflicts. The US will work with Ireland and the EU in the coming months to help resolve conflicts in Africa, to organise donor conferences for Liberia and Sudan, and to re-energise international efforts to stop the spread of Aids.
In security matters, the US has no better partner than Europe. Despite doubts over actions in Iraq, 20 European countries currently have over 20,000 troops operating there. And 29 European countries, including Ireland, have military personnel in Afghanistan. The US and Europe are now working together to build a new Iraq and a new Afghanistan.
At the Iraq donors' conference in Madrid we welcomed the EU's combined contribution of $1.4 billion. There is good news from Iraq, although I have noticed that the successes of reconstruction are rarely in the papers. For example, healthcare spending is now 26 times what it was under Saddam, and all 240 hospitals and 95 per cent of Iraq's clinics have reopened. The US fully supports the European Security and Defence Policy (ESDP). Working together, the EU and NATO members have crafted a relationship between ESDP and NATO that ensures EU access to NATO's military planning capabilities, while avoiding duplication of tasks. As the EU shapes its structures to meet the challenge of enlargement, we will continue to work with the institutional arrangements that Europe puts in place.
The US needs a strong partner, not a weak rival. Colin Powell affirmed this when he referred to Europeans as "best friends, which is why the President continues to talk about partnerships, not polarities, when he speaks about Europe." We have faith that the EU will make decisions that are good, not only for Europe, but for the US and the world.
No European government is more capable of advancing the US-EU partnership than Ireland. With its economic and cultural links to America, and common views, Ireland is well placed to serve as a transatlantic bridge and to further strengthen the "irreplaceable relationship".