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For the EU’s prosperity, we must empower the single market now

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For the EU’s prosperity, we must empower the single market now

The opinions expressed in this article are those of the author and do not represent in any way the editorial position of Euronews.

The EU rests on its single market, its singular crowning achievement. To ensure the EU’s future competitiveness and prosperity, its leaders must act now to truly empower it, Jacques Pelkmans writes.

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When the EU marked 30 years of the single market in 2023, a report should have been written about it but was not even requested. 

The core of the unwritten report would have concluded that the union’s single market is far weaker than assumed and not nearly as “single” as the name suggests. 

It is full of shortcomings and contains hundreds of barriers and distortions that seriously and detrimentally impact the EU’s ability to stimulate and encourage investment.

This must be addressed by EU policymakers as a matter of urgency. We need immediate and sustained action to deepen and strengthen the single market at the highest political level.

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This is why the “other” report that should have been commissioned and written last year is so strategic — even though the term “strategic” is mightily overused in today’s EU. 

But for the health and dynamism of the EU’s economy over the long term, there is no action more important and more strategic than empowering the single market. It truly is the EU’s trump card in an increasingly unstable and uncertain global order.

Real ownership required

The EU could gain as much as 9% of its current GDP if concrete steps are taken now to empower the single market, tantamount to the current combined GDP of the Czech Republic, Belgium and Ireland. 

If the EU could induce a greater sense of dynamism via start-ups/scale-ups and a heavier emphasis on R&D and patents, the extra boost in GDP would be even higher.

To achieve this requires real ownership by the EU’s political leadership, however. There needs to be firm action by the European Council right after the start of the new European Commission’s mandate and the formation of the new European Parliament later this summer.

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The new CEPS In-Depth Analysis report “Empowering the Single Market” (arguably the unwritten report on the single market that should have been commissioned last year) calls for a medium-term programme that would be decided by the European Council but embraced and implemented by the European Commission, in partnership with the EP. The plan would include regular and rigorous oversight to ensure progress doesn’t stall.

At the European Council level, the troika of national presidencies ought to be as active and enterprising as during the early Delors period (late 1985-1988). 

There should be a dedicated Commissioner for the internal market, ideally a Vice-President to clearly signal that the single market is a political priority.

The rest of the report’s programme mostly outlines substance rather than institutional issues, with one key exception — enforcement. Infringements are often costly for the single market but hardly so for the relevant member states, even over a period of several years. 

Thus, in serious instances, a fast-track procedure or the suspension of a national law should be possible. Finally, the European Parliament’s IMCO committee should have annual single market enforcement sessions, with accompanying reports, and extensive hearings giving consumers, citizens and businesses a clear voice.

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No pain, no gain

The substance of the proposed medium-term programme ought to be ambitious. It must be accepted that, in the short run, some measures are bound to be painful for some, otherwise, genuine progress will never be more than piecemeal. 

The credibility and effectiveness of the programme hinges first of all on services, with two parallel action plans proposed.

The first is about removing barriers and distortions in services falling under the 2006 Services Directive, with an emphasis on professional services, retail (all the way down to the local level) and construction services.

The second is about services falling under dedicated sector regulation, such as rail freight, as well as effective progress in achieving competitive and larger European capital markets — crucial for ensuring EU businesses, including start-ups, can access risk capital. 

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The second plan also stresses the need for the full integration of banking services, the better facilitation of cross-border consumer (and other) finance and more investment in cross-border interconnectors.

The proposed programme’s credibility would also rest on ending “hard fragmentation”, namely consolidating the EU’s telecoms market, stricter rules to coordinate spectrum frequencies between member states, the fully-fledged Europe-wide operation of air traffic control, and shifting from a myriad of national copyright rules to a single EU copyright regime.

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Ambitious and far-reaching is the only way

Other significant moves include the European Commission abandoning its revised approach to harmonised European standards — this has no useful purpose. 

Regulating on issues that are better left to diplomacy, which has severe costs for European companies involved in global value chains, also needs to be stopped. 

And finally, support for EU start-ups must be improved to encourage and stimulate more dynamism in the EU economy.

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Make no mistake, all of the above is highly ambitious. Enacting such a far-reaching programme will require much political skill, resolve and capital. But the consequences of not doing it would be far worse.

The EU rests on its single market, its singular crowning achievement. To ensure the EU’s future competitiveness and prosperity, its leaders must act now to truly empower it.

Jacques Pelkmans is Associate Senior Research Fellow at CEPS and professor at the College of Europe in Bruges.

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Video: Police Remove Dozens of Protesters from Sciences Po University in Paris

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Video: Police Remove Dozens of Protesters from Sciences Po University in Paris

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Police Remove Dozens of Protesters from Sciences Po University in Paris

Student demonstrators had been occupying a campus building in central Paris, in protest over the war in Gaza. French police cleared the building on Friday.

Free Palestine. Free, free Palestine.

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Recent episodes in Israel-Hamas War

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Brazil's Lula invites Japan's prime minister to eat his country's meat, and become a believer

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Brazil's Lula invites Japan's prime minister to eat his country's meat, and become a believer

Brazil’s President Luiz Inácio Lula da Silva on Friday welcomed Japan’s Prime Minister Fumio Kishida on his first visit to the country, with the two meeting in the capital of Brasilia and the South American leader pushing his counterpart to buy his country’s beef.

Brazil had wished to seize on the bilateral meeting to push forward an agreement to open Japanese markets to Brazilian beef, a goal the Latin American country has pursued since 2005. In an appeal to the prime minister, Lula insisted he should eat at a steakhouse during his trip.

BRAZIL REASSURES FOREIGN COUNTRIES AFTER MEAT SCANDAL

“I don’t know what you had for dinner last night,” Lula said during the press conference, looking at Kishida and the Japanese delegation, then turning his attention to Vice President Geraldo Alckmin, who is also Minister of Industry, Commerce, Development and Trade. “Please, take Prime Minister Fumio to eat steak at the best restaurant in Sao Paulo so that, the following week, he starts importing our beef.”

Brazilian President Luiz Inácio Lula da Silva, right, and Japan’s Prime Minister Fumio Kishida shake hands for the media during a meeting at Planalto presidential palace in Brasília, Brazil, Friday, May 3, 2024.  (AP Photo/Luis Nova)

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Under Lula, Brazil has boosted efforts to export beef to international markets. Since the beginning of 2023 when Lula took office, 50 countries have lifted restrictions, mostly in Asia. According to Brazilian officials, about 70% of the beef consumed in Japan is imported, while 80% of the imports come from the U.S. and Australia.

“Our meat is cheaper and of better quality than the meat you buy. I don’t even know the price, but I’m sure ours is cheaper, and of extreme quality,” Lula added.

Brazil exported more than 2 million pounds of beef in 2023, barely breaking the record set the prior year, according to official trade data. The nation is the world’s largest beef exporter, shipping to over 90 countries. The sanitary conditions of the cattle industry are now “much better than in 2005, particularly regarding recognition of areas free from foot-and-mouth disease without vaccination,” Eduardo Paes Saboia, the secretary for Asia and Pacific at Brazil’s foreign affairs ministry, told reporters in Brasilia.

The cattle industry is also a major driver of the destruction of the Amazon rainforest and the Cerrado, a vast tropical savanna region. Japan and Brazil agreed to Japanese support for restoration initiatives of the Cerrado’s degraded areas. Additional cooperation agreements pertained to cooperation in cybersecurity and investment promotion, among other areas.

“There is great potential in bilateral cooperation to address global challenges,” Kishida said at a press conference after their bilateral meeting.

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He added that he expected to enhance Japanese and Brazilian cooperation in environmental protection measures, climate change and sustainable development, mentioning his country’s recent $3 million contribution to the Brazilian government’s fund to protect the Amazon rainforest. He also noted that 150 Japanese executives had joined him on the trip.

Kishida’s first words to Lula, according to the Brazilian president, were to express solidarity with the victims of the floods in the southern state of Rio Grande do Sul that have killed 37 people as of Friday morning, with dozens more still missing.

Brazil is home to the world’s largest Japanese community outside Japan, with over 2.7 million Japanese citizens and their descendants. The first ships from the Asian country arrived to Brazil in 1908, and immigration peaked between World War I and II.

Prime Minister Kishida will travel to Asuncion, Paraguay in the afternoon to attend a business summit, meet the Japanese community and have dinner with President Santiago Peña. On Saturday morning, he is expected to fly back to Brazil to meet the Japanese community in Sao Paulo, deliver a speech at the University of Sao Paulo and attend a business meeting.

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In Texas, pro-Palestine university protesters clash with state leaders

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In Texas, pro-Palestine university protesters clash with state leaders

Austin, Texas – “It didn’t feel real.” That’s how Alishba Javaid, a student at the University of Texas at Austin, describes the moment when she saw roughly 30 state troopers walk onto the campus lawn.

Javaid and hundreds of her classmates had gathered on the grass, in the shadow of the campus’s 94-metre limestone tower, as part of a walkout against Israel’s war in Gaza.

They were hoping that their school would divest from manufacturers supplying weapons to Israel. Instead, law enforcement started to appear in increasing numbers.

By Javaid’s count, the state troopers joined at least 50 fellow officers already in place, all dressed in riot gear. The protest had been peaceful, but nerves were at a high. The troopers continued their advance.

“That was the first moment I was genuinely scared,” said Javaid, 22.

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Dozens of students were ultimately arrested on April 24, as the officers attempted to disperse the protesters. Footage of the clashes between police and demonstrators quickly spread online, echoing images from other campus protests across the United States.

Yet, Texans face a unique challenge, as they contend with a far-right state government that has sought to limit protests against Israel.

In 2017, Governor Greg Abbott signed a law that prohibits government entities from working with businesses that boycott Israel, and the state has since taken steps to tighten that law further.

Abbott has also cast the current protests as “hate-filled” and “anti-Semitic”, amplifying misconceptions about demonstrators and their goals.

In addition, a state law went into effect earlier this year that forced public universities to shutter their diversity, equity and inclusion (DEI) offices.

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Multiple students and employees told Al Jazeera that campuses have become less safe for people of colour as a result of the law, which forced the departure of staff DEI advocates.

Barricades sit in front of the tower on the University of Texas campus in Austin on April 30 [Nuri Vallbona/Reuters]

‘Using violence to subvert minorities’

The violence has continued at University of Texas campuses as students press forward with their protests.

On the final day of class, April 29, police used pepper spray and flash-bang devices to clear a crowd at the Austin campus, while dozens more were encircled by troopers and dragged away screaming.

Hiba Faruqi, a 21-year-old student, said her knee “just kept bleeding” after she was knocked over during a pushing-and-shoving match between students and police.

Yet she counts herself lucky for not sustaining worse injuries. It was surreal, she said, to think that her own university called in state troopers — and then had to deploy medical personnel to assist students who were hurt.

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“There’s a racist element people don’t want to talk about here,” she said. “There’s a xenophobic element people don’t want to acknowledge. There are more brown protesters, which maybe emboldens the police to do things a certain way.”

As calls for divestment continue, students, lawyers and advocates told Al Jazeera they have been forced to navigate scepticism and outright hostility from the Texas government.

“Texas is known for using violence to subvert minorities,” Faruqi said. “The reason this is shaking people this time is because it’s not working.”

A little boy sits atop an adult's shoulders amid a pro-Palestinian protest, where Palestinian flags fly.
Protesters gather at Texas universities to call for divestment from firms linked to Israeli weapons [Tyler Hicks/Al Jazeera]

Scrutiny over university endowments

Many of the protests have zeroed in on the University of Texas’s endowment, a bank of funds designed to support its nine campuses over the long term.

The University of Texas system has the largest public education endowment in the country, worth more than $40bn.

Some of that money comes from investments in weapons and defence contractors, as well as aerospace, energy and defence technology companies with deep ties to Israel.

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ExxonMobil, for example, is one of the biggest beneficiaries of the system’s investments, and the company has supplied Israel with fuel for its fighter jets.

Those ties have fuelled the protests across the state’s public university campuses, including a May 1 demonstration at the University of Texas at Dallas.

Fatima — who only shared her first name with Al Jazeera, out of fear for her safety — was among the demonstrators. She wiped sweat from her brow as a young child led the crowd of about 100 in a series of chants: “Free, free, free Palestine!”

The divestment protests have largely been peaceful, Fatima explained, raising her voice to be heard above the noise.

“Over 30,000 people have been murdered,” she said, referring to the death toll in Gaza, where Israel’s military campaign is entering its eighth month.

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“And our university is investing in weapons manufacturing companies that are providing Israel with these weapons. We’re going to stay here until our demands are met.”

Twenty-one students and staff members were arrested that day in Dallas. Members of the group Students for Justice in Palestine, of which Fatima is a member, spent the night outside the county jail, waiting for their friends to be released.

One protester wryly noted outside the jail that they had been arrested for trespassing on their own campus, a seemingly nonsensical offence.

In the background, a thunderstorm was beginning to rear its head, so the protesters huddled closer together under the awning.

Protesters applaud one another as they exit a jail in Austin. One woman is surrounded by two friends who wrap themselves around her, as her eyes close with emotion.
Student protesters applaud one another as they are released from the Travis County Jail in Austin, Texas, on April 30 [Nuri Vallbona/Reuters]

Texas officials and university administrators have justified the police crackdowns, in part, by citing the presence of outsiders with no present affiliation with the campuses involved.

But 30-year-old activist Anissa Jaqaman is among those visiting the university protests, in an effort to lend supplies and support.

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Everyone has a role to play, Jaqaman explained: Her role is sometimes that of the communicator, but more often that of the healer.

She has brought water to the student demonstrators at the University of Texas at Dallas and hopes to provide a space for people to “come over and talk about how we heal”.

“This is a healing movement,” she said time and again as she spoke to Al Jazeera. “We have to carry each other.”

Jaqaman is Texas through and through: She was raised in the Dallas suburbs and is a strong advocate for her state.

“I’m a proud Texan,” she said. “I actually think that Texans are some of the nicest people in the country.”

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But back when she was in college, from 2012 to 2016, Jaqaman started to use her voice to bring awareness to the plight of Palestinians.

Rights groups have long warned that Israel has imposed a system of apartheid against the ethnic group, subjecting its members to discrimination and displacement.

In college, Jaqaman’s friends often laughed at her passion. She often smiles, exuding optimism, but her voice grows serious as she talks about Palestine, as well as other issues like the scourge of single-use plastics.

“They just thought I was a tree-hugger, but for human rights,” she explained, speaking in a soft yet confident voice.

But the current war has amplified her concerns. The United Nations has signalled famine is “imminent” in parts of Gaza, and rights experts have pointed to a “risk of genocide” in the Palestinian enclave.

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Jaqaman has sported her keffiyeh scarf ever since the war began on October 7, despite feeling anxious that it could attract violence against her.

“I wear it because I feel like it protects my heart, honestly,” she said. “I feel like I’m doing the Palestinian people injustice by not wearing it.”

But she has struggled to get public officials to engage with her concerns about the war and divestment from industries tied to Israel’s military. For months, she attempted to persuade her local city council that “this is a human issue, an everyone issue”, to little avail.

“Everything that we’re seeing right now is about shutting down the discussion,” she said. “If you say anything about Palestine, you’re labelled anti-Semitic. That’s a conversation-ender.”

A little boy speaks into a microphone at a pro-Palestinian protests, as "Free Palestine" flags wave.
A boy leads a crowd in pro-Palestinian chants at a demonstration in Dallas, Texas [Tyler Hicks/Al Jazeera]

Youth protesters look to the future

Students like Javaid, a journalism major in her final semester, told Al Jazeera that they are still trying to figure out what healing looks like — and what their futures might hold. In many ways, she and her friends feel stuck.

They recognise they need to take a break from scouring social media for information about the war, and yet it is all they can think about.

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The usual college rites of passage — final exams, graduation and job hunting — just don’t seem as important any more.

“How are we supposed to go back to work now?” Javaid asked after the protests.

While she has treasured her time at the university, she is also highly critical of its actions to stamp out the protests. Part of the blame, she added, lies with the government, though.

“The root issue in Texas is that the state government doesn’t care,” she said.

Born and raised in the Dallas area, Javaid plans to stay in Texas for at least a little while after she graduates this month. She has mixed feelings about staying long term, though.

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She would like to work in social justice, particularly in higher education, but she worries such a job would be tenuous in her home state.

Still, she feels a sense of responsibility tying her to the state. The political climate in Texas may be challenging, she said, but she has a duty — to her fellow protesters and to Palestine — to keep playing a role.

“I don’t want to jump ship and just say, ‘Texas is crazy’,” Javaid said. “I want to be a part of the people trying to make it better. Because if not us, who?”

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