EU at 50

The European Commission has put forward a proposal that would allow patients to seek out medical assistance in other countries irrespective of the approval of their health care provider. Citing principles of free choice, free movement and comparative advantage, EU Health Commissioner, Androulla Vassiliou presented the plans in Brussels.

Though the Financial Times predicts the advent of ‘health tourism’ , Mrs. Vassiliou argues that effects would actually be beneficial:

“Every country is very eager to spend money on everything because there is a demand from their citizens. Gradually they will realise they cannot have everything. It is better to specialise in certain things and rely on your neighbour for something else and vice versa. There will be this pooling together of expertise and knowledge.”

She also dismisses ideas of health care ’stop ‘n shop’:

“Few patients take up their right. By giving them more information it would open the option up beyond the rich who can already afford to travel, she said. “Ninety per cent of people prefer to stay at home where they know the language and the system,” she said.

Just as the demands for increased female leadership in the EU become more vociferous, a new study reveals that enormous income gaps in some of the Union’s largest countries are hurting women’s chances and having a harmful effect on the economy as a whole. Speaking to German daily, Die Welt, the EU Commissioner for Employment, Social Affairs and Equal Opportunities, Vladimir Spidla, revealed the findings of a recent EU study on wage discrimination, which highlights that women in the Union’s most populous economy, Germany, earn 22% less than their male counterparts in average hourly wage. This makes Germany one of the states with “the highest inequality in the payment of men and women,” Spidla said. Estonia, Cyprus and Slovakia offer a similar bleak picture, with averages the same or slightly higher than the German figure (the EU average is 15%).

Spidla points to the fact that too many German women still choose to work part-time, in jobs that are underpaid, because of the lack of opportunities for child and elderly care. Germany still largely operates as a male-driven society, where the man is the breadwinner and the woman - irrespective of her level of education or opportunities in the work force - stays home. Over the past two administrations, important changes have been made, with the introduction of increased flexibility in childcare, new forms of parental financial support, and greater emphasis on the role of employers, who are losing out on valuable labor. The prospects of demographic decline has hastened the government response to these pressing issues, but at the study proves, results are yet to be felt.

The Financial Times Deutschland (quoted in the English language version of Der Spiegel), also points out the detrimental consequences of a lack of women in the labor force in times when qualified workers are scarce and offers a European comparison:

“Regardless of the discrimination issue, it’s a problem for the economy, which is crying out for skilled employees, if women are thwarted in their careers. That’s what happens if they’re made to choose between having children and having a career. Belgium has excellent child-care provisions — and is among the countries with the lowest wage differentials between men and women in the European Union. Germany is at the other end of the scale. Silent reserves of qualified women could be used here.”

Naturally, a real solution to Germany’s skilled labor problem is a combination of utilizing existing labor resources (i.e. motivating women to return to work after childbirth by offering feasible solutions to combine both work and family) and creating a feasible, flexible labor migration system as proposed through the EU Blue Card. However, changing policies is one thing - changing mentalities is another!

“Don’t let yourself be fooled,” is EU Trade Commissioner Peter Mandelson’s message to American voters. In an interview for BBC’s Hardtalk, which was excerpted to the Financial Times, Mandelson argues that promising disengagement from certain parts of the global trading system in order to win votes is dangerous. Implicitly critiquing views expressed by Democratic Presidential hopefuls Barack Obama and Hillary Clinton, he said “It is irresponsible to be pretending to people you can erect new protection, new tariff barriers around your economy in this 21st century global age and still succeed in sustaining living standards and jobs. It is a mirage and they know it.”

Mrs. Clinton made headlines earlier in the year saying that she would renegotiate the North American Free Trade agreement, once signed by her husband in an effort to protect American jobs. Both Senator Obama and Clinton have said they would “punish” China by supporting a bill that would introduce trade tarriffs on the country, to compensate for an undervalued Yuan Renmibi.

To this Mandelson says: “”It is very irresponsible in my view to pretend to people that we can disengage from international trade, we can create barriers around our economy and then be surprised when people retaliate by doing the same,” he said. “It is going to lead us into a vicious spiral of beggar-thy-neighbour policies which will take us decades back in terms of trade growth.”

The EU Trade Commissioner is undoubtedly worried about whether or not he can count on Democrate assurances that upon the election of a President from its ranks the difficult (and thus far unsuccessful) Doha Trade Round negotiations would not be threatened.

 Commentators are speculating about the end of the Barroso Commission as we know it. It seems as if he resignation of EU health Commissioner Markos Kyprianou to take up the post as Cyprus’ Foreign Minister two weeks ago was only the beginning. Effective March 14 one of the arguably most successful Commissioners, internal policy head Franco Frattini will take a leave of absence to campaign for Silvio Berlusconi, as he puts in his bid for another term as Italy’s prime minister. Frattini’s return looks as unlikely as the likely Berlusconi victory, meaning he will have a plush cabinet post waiting for him. EU transport Commissioner, Jacques Barrot, will take over for Frattini during his announced one-month absence, but should speculations prove true, a permanent solution will have to be found.

This news comes only days after the Austrian press published articles insinuating that Members of the European Parliament would be unlikely to support a second term for current Commission President José Manuel Barroso. That might be the least of Barroso’s current worries, however, as his term runs until 2009. He might be fretting more over fishery Commissioner Joe Borg’s interest in returning to his home country of Malta, following recent elections there. Or, he might be concerned about how long it might take the European Parliament to approve the candidates set to follow in these Commissioner’s footsteps, recalling the Rocco Buttiglione crisis, which necessitated a reshuffle at the last minute.

Alternatively, he could be seeing this as a warm-up for the changes to come. Once the Lisbon Reform Treaty is ratified by all Member States, the EU Foreign Minister will be introduced. Only candidate for the post: the current EU chief diplomat (official title: High Representative for the Common Foreign and Security Policy - what a mouthful), Spaniard Javier Solana. His post will necessitate an institutional change, as Solana will move from the Council to the Commission. This in turn might cost two current Commissioners their job: fellow Spaniard and monetary affairs Commissioner Joaquin Almunia and Austrian external relations head, Benita Ferrero-Waldner, who has already taken a back seat to Solana in terms of driving that policy area.

Commentators are seeing the recent developments as a sign of instability, while Commission spokespeople are quick to paint the story in a different light, speaking instead of the distinctive leadership capacity these men and women have that they are called back to ‘national duty’. Naturally, these changes are cannot be compared to the Santer fiasco. Yes, these shifts don’t make the Commission seem like the most stable administration, but they are a part of the European political process. Yes, the approval hearings might be drawn out, as the European Parliament flexes its muscle as and holds new candidates to account. Is that likely? No. The Member States have a vested interest in putting forth candidates that will win the support of the parliament and the latter has no interest in stalling the legislative process. The hearings will be another opportunity for the parliament to prove its legitimate role in a ‘normal’ EU political process, however, and if it retains its critical capacity to discriminate and weed out the good from the bad, it will bolster its significance and highlight the normalcy of change in a functional supranational, democratic entity.