Ambassador Luminița Teodora Odobescu, career diplomat with a PhD in international economic relations at the Academy of Economic Studies in Bucharest, is Romania's Permanent Representative to the European Union. In the interview she gave to the Geostrategic Pulse, Ambassador Odobescu analysed the perspectives of, and the challenges faced by, the EU's resilience in the context of the COVID-19 pandemic.
Vladimir-Adrian Costea: Now when most of the world mulls its post-pandemic future, how do you see the future of the EU? Has the COVID-19 pandemic influenced the EU’s capability to adapt to the new challenges?
Luminița Odobescu: The crisis caused by the COVID-19 pandemic is, without a doubt, a lesson we had to learn fast, adapting as we went along to a situation unprecedented in our recent history. As always, the most trying moments also force us to reflection – which is absolutely necessary both for the evolution of our society and of the Union. We are only at the beginning of this period of reflection, as the crisis has numerous repercussions – economically, socially, financially, and also globally, in terms of our positioning vis-à-vis our strategic partners.
We all know that the initial response was hesitant, difficult sometimes, and this should be attributed rather to an instinctive reaction of the member states to protect their citizens through domestic actions, given that, it must not be forgotten, health is an issue under national competence. It soon became obvious, however, that the virus had no borders, that we were dependent on each-other and that coordination and, most of all, solidarity were mostly needed.
The European Union understood that a paradigm shift was needed, so it recalibrated its approach; and the results did not fail to appear. More than ever, it became obvious that solutions could only be found by working together – a conclusion that is relevant not only in relation to the current crisis but also to all the challenges the contemporary world is currently facing. Furthermore, it became clear that this approach is necessary not only in managing the current sanitary and economic crisis, but also as part of the Union’s general medium and long-term strategy. The Union’s response capability must be redefined, as must the degree of flexibility of its responses, in order to adequately respond to potential crises.
Perhaps the most relevant example of the post-pandemic perspective on our common future is provided by the two EU support package proposals, aimed at responding to this crisis. The first package represents an immediate measure, amounting to over 540 million euros. Additionally, there is the European Commission’s recently proposed Plan for EU economic recovery, an ambitious and very complex plan whereby the Recovery Fund harmonises with the Multiannual Financial Framework, in full compliance with the basic principles of the European project – solidarity, inclusiveness and cohesion. The objective is to ensure the long-term resilience of the Union.
As I have mentioned, it is too soon to draw any conclusions for the time being, since there are clearly still many lessons to be learned and the whole process is far from over. However, we can assume that the EU’s resilience will eventually depend on our ability to find the right balance between, on the one hand, the need to be flexible and pragmatically adapting to new circumstances, and, on the other hand, the full preservation of the principles and values that form the foundation of the European project.
To what extent did the current European mechanisms facilitate cooperation and a quick response?
After the first rather difficult couple of weeks, with restrictive measures taken at national level and a series of approaches that seemed to question the European solidarity, the European institutions (mainly the European Commission), as well as the governments of the member states realised that an individual approach would be far from enough to tackle the crisis – on the contrary, our increased interdependence and our common goals are forcing us to work together in a fast and coordinated manner. Once more, the European framework has thus come up with political and practical solutions.
Work methods also had to be adapted, with ministers and experts resorting to videoconferences. The ambassadors of the member states kept on meeting face to face throughout the whole period (observing health rules): this was reflected by the decisions taken and by the way the institutions and national governments eventually managed to coordinate their work. Even procedural rules have been adapted in order to enable decision taking without physical presence.
During a crisis, it is the ability to react and the efficacy of measures that matter. While there may have been difficulties and delays in reacting to the crisis initially, all these have been gradually remedied, and the decisions and measures taken have eventually proved effective.
The list of measures taken by the EU using the instruments already in place is very long and complex. I will give only a few examples, which hopefully will be a relevant indicator of the measures taken:
Additionally, I would recall once again the recent proposal for economic recovery of the European Commission, consisting of a 750-billion-euro recovery plan and a 1,100-billion-euro proposal for the future Multiannual Financial Framework. These are unprecedented measures, both in size and in complexity. They are currently part of a very intense negotiation process, but they are already indicative of the level of ambition in facing this challenge.
I would like to stress, however, that the list above is not comprehensive; there are many other measures that have been taken at the level of the Union – for example, the set of measures allowing greater flexibility to a series of existing rules (for example, in the field of state aid, of excessive deficit procedures etc.) or those that have been adopted in tackling “fake news” or disinformation.
What are the scenarios regarding cooperation and solidarity between countries, in the context of the economic and social crisis caused by the COVID-19 pandemic? Are there any new rifts or splits "vis-à-vis" the affected countries?
As previously mentioned, I believe that this crisis represents also an opportunity for self-evaluation and repositioning. They say that a crisis can also be an opportunity. It is up to us to turn the current challenges into an opportunity for economic growth and resilience not only as regards our health systems, but also the European society and the Union as a whole. Or resilience – I believe it is obvious to all of us – is not possible without solidarity. It is becoming clearer by the day that, having in mind the reality of our contemporary world, the solution lies only in cooperation.
Let us not forget that one of the European Union’s founding principles is solidarity – conceived, following the trauma of World War II, as a recovery and peace-consolidating solution made possible through strengthening mutual trust and setting common objectives to the benefit of all. A generous idea that has led to prosperity and has ensured the European peace for the last 70 years.
I believe that the Union will emerge stronger from this difficult period, with stronger values, with clearer objectives and with more coherent courses of action.
We should acknowledge that in the absence of all the complex measures taken at EU level, without a coordinated course of action and without constant dialogue with the other member states, it would have been far more difficult for us all to manage this period and get over it. The same approach is needed over the upcoming period, just with even greater scope. Indeed, for decades this particular method has enabled us to enhance joint mechanisms that engender shared values and objectives.
I thus believe that the only viable scenario for the future of the European project cannot be conceived without solidarity and cohesion. The only way to overcome the current challenges is to work together, and, I believe, this is clear to everyone.
What main actions do you consider viable for an increased cooperation among countries?
I have briefly mentioned earlier some of the measures taken at the European Union level in dealing with the effects of the pandemic. I believe that apart from their immediate role – to identify solutions to various sanitary, economic, or other problems posed by the Coronavirus – these measures have been a way of working together, coherently and in coordination.
The actions the EU has taken so far, from the sectorial ones to the post-pandemic recovery plan, which I have already mentioned, provide, I believe, a coherent action framework with common courses of action, which serve the interests of all member countries, and those of the Union, in its entirety.
Currently, the Union’s major priorities are, on the one hand, a coordinated exit from the pandemic, and on the other, just as important, the economic recovery. The measures proposed for both objectives – many currently under negotiation – are complex and cover multiple sectors.
For example, for a sustainable exit from the crisis and for a long term tackling of the pandemic, the production and swift distribution of an effective and safe vaccine is essential. Thus, building on the talks some member states had had with certain vaccine manufacturers, the European Commission launched last week, on the 17th of June, a common strategy for the development and production of a vaccine against COVID-19. The goal would be the production of a sufficient number of vaccines in the EU and their fair distribution among the population.
Thus, the member states that wish to take part in this initiative will authorise the European Commission to negotiate with the manufacturers on their behalf, with the aim of finding a vaccine. Specifically, in order to support the companies to quickly develop and produce a vaccine, the Commission will sign contracts with individual manufacturers and, in exchange for the right to purchase a certain number of doses, it will finance, through the emergency support instrument, some of the initial costs needed for the development of these vaccines. This financing will practically be considered a down payment for the vaccines that will eventually be bought by the member states.
Another very important measure taken to strengthen cooperation envisages the complete removal of internal border restrictions (hopefully by the end of June), followed by the gradual removal of external border restrictions. Discussions are taking place within the Council of the European Union to establish a transparent strategy based on the epidemiologic situation that will not endanger the progress achieved in the fight against the pandemic within the EU.
The increased cooperation may be best illustrated by the previously mentioned economic recovery package proposed by the Commission. It is the greatest extra-budgetary effort that the European Union has ever made. The 750 billion euros added to the classic EU financial framework of 1,100 billion euros represent extra money that is to be financed through loans borrowed by the European Commission on the capital market.
The details of this plan are currently under negotiation, yet, irrespective of the final compromise, it will provide a real chance of economic recovery to all the member states, while maintaining the cohesion objectives. With a major grant component, this economic recovery plan will bypass the over-indebtedness of the countries that are most affected and most vulnerable.
Through these funds, the EU will be able to finance reform and investment projects that facilitate the recovery of national economies after the crisis, at the same time facilitating the transition to a green and digital economy.
We are talking about funds that can be invested in projects that Romania truly needs, such as: digital and modernization projects; investing in the health system; developing green transportation, even the railroad system; investing in water and sewerage, education or renewable energy.
It is worth mentioning the considerable additional funds from the Just Transition Fund, dedicated to projects meant to support the workers who are most affected by the transition towards a climate neutral economy, such as those in coal regions.
These are just a few examples, but the list goes on.
To what extent does this latest threat, represented by the COVID-19 pandemic, bring to the fore opportunities that have not been exploited enough, so far?
It has been often said that the world will not be the same after this pandemic. I believe this to be the case with any major crisis. Inevitably, assessments and analyses are made, conclusions are drawn and solutions are found for the future. This inherently brings a series of opportunities.
For example, the COVID-19 crisis catalysed Europe’s “go green” and digital tendencies, given that the Recovery Plan proposed by the European Commission sustainably supports the recovery of the economies affected by the pandemic, integrating the green/ecological and digital transitions.
I believe it is important to mention, under these circumstances, that the Romanian Government signed a declaration regarding the use of investments from the European Ecological Pact as a key element in the European Union’s recovery plan, which proves our country’s commitment to support the transition towards climate neutrality and towards building a more sustainable and resilient Europe.
Another aspect highlighted by the crisis is the importance of having access to medicine, which is why the European Commission is now preparing a European strategy for the pharmaceutical industry, which has recently held public consultations. This new strategy aims at improving access to safe medicines, at affordable prices, accessible to the citizens, as well as supporting innovation in this obviously vital field to the European economy. Of course, the pharmaceutical strategy will have to be closely related to the European Industrial Strategy, considering the difficulties related to the regular supply chains and Union medicine stocks of the past months.
There is more and more talk about ensuring the strategic autonomy of the EU in key areas, by supporting this double green and digital transition that I was referring to, while, at the same time, following the principles of an open economy, including those of free and fair trade. Strengthening strategic autonomy does not mean that Europe will isolate itself, but that we will better protect our strategic interests, including by mobilising the financial resources necessary to support them. An example in this direction would be the reindustrialization of the Union, which can contribute to its strategic autonomy.
At the same time, the current crisis has created the environment for a more visible EU at a multilateral level – seen as a major objective, while preserving the energy dedicated to the promotion of European values and to the continuation of cooperation and coordination with its strategic partners. As far as our security and defence are concerned, the development of a common strategic culture can be enhanced and improved only by synchronising the European efforts with those exerted by international organizations, such as the UN, ensuring complementarity with NATO and asserting the essential role of the transatlantic relation.
Is the populist rhetoric within the European Union a major obstacle for the support offered to the countries seriously affected by this pandemic? What is, in this case, the possibility of populism becoming once more a threat in the EU?
It is true that particularly in times of crisis, populism, fuelled by aggressive disinformation campaigns, may find the fertile ground to spread. When inherent difficulties appear, such as those caused by the current pandemic, the citizens’ views may be negatively influenced and the spread of false, erroneous or ill-willed information represents an element that can sabotage even the most generous intentions and actions.
Under the current situation we have not been spared by this kind of phenomena. The Union’s initial hesitations were a good pretext for such approaches, the main purpose of which is, after all, undermining the solidarity and the fundamental values of the European project.
However, as the efforts of the Union materialised into actions with positive effects, which sent a strong solidarity signal, I believe that the seduction power of the populist messages got diluted. Moreover, at the level of the EU, the need to communicate properly with regard to the whole reconstruction effort, has been fully acknowledged and this we hope, will be reflected by public opinion as well. All European institutions have mobilised accordingly in this respect.
Thus, the European External Action Service activated the Rapid Alert System, which facilitates the quick exchange of information regarding the disinformation campaigns within the EU.
Furthermore, at European Council level, within the EU Integrated Political Crisis Response framework, representatives of the EU member states have constantly assessed the situation and proposed measures to be taken for public communications, so that the European citizens could have access to accurate and high-quality information. In turn, during the European Council of March 2020, the European leaders committed to counter disinformation through regular, transparent, fact-based communication.
Moreover, at the beginning of June 2020, the Commission and the EU High Representative presented a joint communication titled “Tackling COVID-19 disinformation – Getting the facts right”, which evaluates the main challenges to countering disinformation in the context of the pandemic. The commission thus proposed several concrete actions to create a stronger and more resilient Europe, which are about to be implemented in the forthcoming period. The proposed actions will contribute to future EU activities regarding disinformation, especially to the European Democracy Action Plan and the Digital Services Act.
Apart from all these measures, the best obvious way to combat populism is to find the proper solutions to overcome the crisis, especially its economic aspect. Today, however, even the best actions, unless accompanied by effective, active and real-time communication will fail to be convincing enough.
The odds that populism (as well as its favourite tool – disinformation) could be successful depend, however, on each of us. We all have an important part to play so as not to fall prey to manipulation. Aside from the vigilance with which we must learn to choose our sources of information, we must permanently remember what are the values on which we wish to build our society.