European states ‘must not turn to nationalism’

GOVERNMENTS must not turn to nationalism to protect their economies or Europe will repeat the same mistakes which drove it towards war in the 1930s, the vice-president of the European Commission has said.

Commissioner Guenter Verheugen said the success of the EU had been rooted in its ability to open up economies and promote competition. If countries built economic barriers it would create a similar climate to that which existed in the 1930s.

“Everybody knows the lessons of the 1930s and we must not repeat the mistakes made back then.

“It is one of Europe’s greatest achievements to have overcome economic nationalism and to have scrapped tariffs and other trade restrictions to create the biggest single market in the world. We should not return to such ideas now when they are less justified than ever.”

Mr Verheugen, who has responsibility for enterprise, was in Dublin to address the Institute of European Affairs and the Oireachtas Committee on Europe. He also met with Tánaiste Mary Coughlan and spoke to employers’ group IBEC. Ms Coughlan agreed with his anti-protectionism stance.

“The EU’s great strength lies in the ability of member states to support one another. In this time of crisis and economic upheaval, the EU is working in a coordinated way to restore confidence and bring about recovery,” he said. “In working together, however, it is vital that we should avoid regressing into protectionist policies. I am confident the EU Commission’s oversight and monitoring will protect the common good.”

Europe has already had to flex its muscles with US President Barack Obama to prevent him prioritising American industries.