Last week I interviewed a Swiss economist, a board member of UBS Bank Klaus Wellershoff, about the global economy during his brief visit to Rio de Janeiro. My first question was about the risk of recession in the United States, a country which has long held the power to determine the pace of the world economy. His first sentence changed the entire direction of my thinking: “The world consists of more than the US,” he said.
He added that, since the second quarter of last year, Europe has been growing faster than the United States. In 2006, America contributed only 24% of world growth, less than both the 28% from Europe and 31% of Asia. In his words, “the United States was only number three.”
The good condition of the European economy is in fact a more interesting conversation topic than yet another interview about the potential of a sub-prime housing market to push the U.S. economy into recession. So I asked how Europe happened to overcome its recent history of stagnation. “This was the result of a long struggle, a period in which Europeans tried to reinvent themselves.”
Europe is not only a recent case of economic success. Europe’s most important struggle has always been the pursuit of peace. If we look back 50 years ago, we can see the beginning of a dream that seemed to have little chance of success. Only six countries – one of them with its territory divided – were in Rome on March, 25, 1957; some of them only a few years before had faced each other in the battlefield. Today the EU has 27 member nations and has won over tyrannies from the Soviets to Salazar, Franco, and more. It is a strong commercial, economic and political organization.
If we look ahead, there are a lot of challenges these nations have yet to face: the assimilation of migrants, an uncompleted Constitution, an aging population. Europe seems more prepared, however, to face today’s paramount global challenge: climate change. Despite having the same quality of life as the U.S., its energy consumption is only half.
Even more importantly, Europe has developed an ambitious plan to reduce carbon emissions in the years ahead. They have collectively reached a sense of urgency while the U.S. demonstrates only islands of patient rationality. This responsibility shows that Europe is not only an historic icon, but a community that still looks fiercely to its future.
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