“Europe is strong when it acts together”

An interview by David Meier

Europabüro Kerstin Westphal 

Kerstin Westphal has been a Member of the European Parliament and the group of the Progressive Alliance of Socialists and Democrats since 2009. She comes from the German state of Bavaria and is a member of the Committee on Regional Development and a substitute member of the Committee on the Internal Market and Consumer Protection. Mrs Westphal is standing again as a candidate for the Social Democratic Party of Germany (SPD) in the European elections. 

Europe HOpes: Mrs Westphal, the current legislative term of the European Parliament draws to its end. In your opinion, what is the greatest accomplishment for young people (16-30 years) the EU has been able to achieve during this legislative term? 

Mrs Westphal: We have worked on numerous projects aimed at securing Europe´s future for coming generations. It is difficult for me to single out one of them. The fight against climate change is surely one of the most significant topics. Many EU rules aim for further decarbonisation of our society for the benefit of future generations. However, combating high youth unemployment in many countries is more tangible to me. We must not risk the arising of a lost generation. I want a Europe that cares and does not leave anyone behind. The increase of Erasmus+ within the framework of the EU budget benefits all young people in training as it comes to mobility and their ability to live abroad. 

Europe HOpes: Could this have been achieved on a purely national level or is it a case of “European added value”, i.e. an improvement that could only be realised within the framework of the EU? 

Mrs Westphal: Clearly, without pan-European rules the challenge of climate change cannot be tackled! In this case only cooperation works as the problems caused by climate change do not stop at national borders. That`s exactly what we want to make anti-Europeans understand: Making borders impregnable is no solution. What we have to do is address the root causes of migration and flight such as droughts and floods which are symptoms of climate change. 

Europe is strong when it acts together. This also applies to the labour market. When there is no perspective for young people in southern or eastern Europe, the EU can develop one by enabling them to work where they are urgently needed e.g. in Germany. 

Europe HOpes: Which crucial opportunities for the improvement of the living conditions of young Europeans has the EU let slip during the last 5 years? What have been the reasons for that failure of exploitation? 

Mrs Westphal: Many EU programmes aim at securing and enhancing a stable and sustainable economy which is a precondition for well-being and security. This is due to the fact that the EU has arisen out of an economic union. However, many young people miss feeling at home in the EU. We have to remember that we are more than a single market. European policy must also be made for those who are not able to contribute to economic growth. Young people bring above all social policy issues to the EU. That is where we can do better. 

Europe HOpes: According to you, what has been the European youth`s or at least a large group of young Europeans most significant contribution toward the European project, so far? Has there been a big mistake or failure on the part of young Europeans that has caused serious damage to the European project? 

Mrs Westphal: What does this ``European Youth`` look like, according to you? Attitudes regarding the EU vary significantly from one state to another. But besides that, I really appreciate and admire the high number of youth associations whose main objective is to promote understanding and appreciation of democracy, political participation and understanding between peoples. By enabling cultural exchanges among youngsters they create experiences that will stay with those people for the rest of their lives. We talk about experiences that correspond exactly to the EU´s motto “United in diversity”. The most important contribution of young people toward the European project is their common hope for well-being, security and peace for all Europeans. 

Europe HOpes: Which opportunities are related to the current developments as it comes to Europes urban and rural areas? Which risks are linked to these tendencies? What can the EU do to seize these opportunities or mitigate the risks? 

Mrs Westphal: Especially in rural areas, one important trend is demographic change. It causes serious problems for the education sector, enterprises, medical care and so on. Probably, this transition cannot be reversed, but it can be influenced. The resources of the Structural Funds are increasingly being channelled to measures responding to these challenges. I remember the project DART which I visited some years ago. Several European regions had joined forces in order to seek common solutions for shaping the effects of an ageing and shrinking population. We have to further promote such projects in the future. The same applies for urban areas with an ageing population. In this context European resources can be used e.g. for accessibility. 

Europe HOpes: Is demographic change only related to problems or can it result in opportunities for urban and rural areas as well? 

Mrs Westphal: The demographic transition is a challenge to our regions. I deliberately speak of challenges as I disapprove the chatter about the big problems in this realm. If we shape this change actively, it can create opportunities for our regions. Of course, some regions will be less populated. However, in case they are equipped with good infrastructure and transport connections this is not necessarily a bad thing. For example in the area of medical care online solutions cannot replace local doctors but thanks to them some trips to specialists in the city can be avoided. 

Europe HOpes: At the moment, an issue of high importance for European Regional Policy is the next multiannual financial framework. The negotiations on it are further complicated due to the loss of the UK`s contribution in the realm of Brexit. Which repercussions for European Regional Policy can be expected? 

Mrs Westphal: The impact will be considerable. Nevertheless, the major threat has already been contained. There had been a discussion on providing financial support only for poorer regions, after 2020. That would have meant that for example Bavaria came away empty-handed. We could prevent that from happening with united forces. Now, the Commission is planning to support all regions as before. Unfortunately, Germany`s share shall be reduced by 20 %. This means, we will be forced to promote less projects. Another problem is the so-called co-financing. Hitherto, the EU`s contribution to most projects had been about 50 %. This percentage shall be reduced. In other words, future projects will have to shoulder a higher share which will be difficult, especially for little projects for instance the ones with regard to the social sector. 

Europe HOpes: What do you think about the European Youth Guarantee? (information for readers: job, education or traineeship for everyone under 25 years within 4 months)

Mrs Westphal: The European Youth Guarantee is a good and essential tool if we really want to tackle one of Europe`s most serious challenges – youth unemployment. Altogether, more than 16 million young people have benefitted from it by now. Nearly two out of three young persons having made use of the European Youth Guarantee have accepted an offer for a job, a training or an internship. Youth unemployment has dropped from its peak of 24 % to 18 % all over Europe. We, the Socialists and Democrats, have always asked for an increased investment in the education of young people because saving until there is nothing more to save does not help anybody. 

Europe HOpes: In light of limited financial room for manoeuvre and the debate on tax avoidance following the revelations of the Luxleaks, Panama Papers and Paradise Papers scandals, can you comprehend German social democratic Finance Minister Scholz rejection of an EU initiative on country-by-country financial reporting obligations for cross-border companies? He expressed this view on 12 July 2018 in the realm of a session of the Committee on Economic and Monetary Affairs. 

Mrs Westphal: Neither do I know Olaf Scholz exact formulation nor am I conversant with the subject. Colleagues who are more acquainted with that topic than I am could have imagined a different answer as far as I know. But as I said I do not exactly know how Olaf Scholz put it and if he maybe had reasons that are unknown to me. 

Europe HOpes: How to reduce bureaucracy regarding access to European funding in a tangible way? How to deal in this regard with the threat of misuse of resources in countries that are more prone to corruption than other member states such as Hungary? 

Mrs Westphal: Considering that we have specific suggestions. The Commission had a great idea setting up a working group that has scrutinised every bureaucratic hurdle. For the first time it was not only composed of staff of the Commission but also of specialists, thus practitioners. One of the results of their work is called lump sum contributions. We are determined to ensure that in the realm of a project not each and every invoice for a computer or a coffee table has to be submitted, but that they can just buy it. We say as well: if an administration works well with structural funds and makes demonstrably hardly any mistakes it will benefit of less frequent inspections in the future. This could save our public administrations a lot of work. On the other hand that means: Those who have not worked correctly and who are responsible for many mistakes still have to expect to be inspected. I have difficulty naming and shaming certain countries but one principle still applies: if errors occur we have to readjust. Fraud is a case for the prosecutor. The new European Public Prosecutor has a lot more means so misappropriated funds can be recuperated. 

Europe Hopes: In light of this, what do you think about the idea of reducing or even dropping funding for states with serious deficiencies regarding the rule of law? 

Mrs Westphal: Funding cuts are always the last resort. Actually, I reject that because the question is: Who will be affected? If we reduce financial resources and a little project aiming 

for the training of young people is consequently cancelled, it will be detrimental to the project and those young people, not to the government in the capital. 

Europe HOpes: Which regulation or directive that came into force during the last legislative period has had by far the greatest impact on regions and municipalities? 

Mrs Westphal: I am tempted to say: The two regulations that are linked to the highest amount of money i.e. the Regulation on the European Regional Development Fund and the European Social Fund Regulation. As it comes to Bavaria, they represent 800 million euro. The concessions directive has been paramount as well. If the European Parliament had not amended the directive there would have been pressure on municipalities to privatise their water supply as of 2016. We put a stop to that. 

Europe Hopes: Is the EU able and willing to prevent another Dieselgate in a better way than the member states who failed to do so? 

Mrs Westphal: Yes, the EU can and wants to achieve that goal but for that to happen it is indispensable that the individual countries play along. From September 2020 onwards every member state is obliged to check the compliance with EU regulation based on inspections on a certain number of vehicles. Furthermore, exhaust emission tests shall be carried out on the road under real driving conditions, not only in the laboratory. Moreover, the EU Commission can conduct tests independently and impose penalties of up to 30.000 euro per vehicle for infringements. That really hurts the corporations, so car manufacturers think twice in future if they want to cheat their customers. One thing is clear to me: Fraud is where the driving fun stops! 

Europe HOpes: Is the EU Commission`s draft directive on the “European form of collective redress”, as things stand at present, the ultimate weapon for consumer protection or just a toothless tiger? 

Mrs Westphal: I welcome this long overdue proposal of the Commission. We, the social democrats, have already demanded compensation for betrayed drivers in the realm of Dieselgate! However good the consumer protection legislation we create may be, it will be of no use to consumers, unless they can assert their rights effectively in court. In so far, the draft proposal means a considerable plus with regard to consumer protection. We will look very closely and take care that these regulations are not watered down and do not become a toothless tiger. 

Europe HOpes: What has already been done for the completion of the digital single market and what will eventually soon follow? 

Mrs Westphal: At the moment we are discussing a variety of proposals of the Commission in the Internal Market Committee. A tangible example: Currently, a proposal for more fairness and transparency concerning online platforms is on the table. Platform operators such as Amazon, Booking or eBay shall be more transparent both for small dealers and consumers, especially as it comes to pricing. 

One thing is important for us: We need fair and transparent regulation for a digital single market in order to enable consumers to choose between a wide range of offers in a fair and transparent manner. There must be clear rules for algorithms as well! Above all we must make sure that platform operators do not always list their own products on top! 

Europe HOpes: Is the new generation of comprehensive bilateral trade agreements consistent with an ambitious EU consumer protection policy? 

Mrs Westphal: Basically, we, the social democrats, demand that consumer protection laws are respected as well in the realm of international trade agreements and that consumer protection standards are not lowered. For instance, some concerns that were discussed in the public regarding CETA are off the table. Neither genetically modified food without labelling nor hormone-treated or cloned meat are to be expected immediately. We, the social democrats, have drawn clear red lines in the EU Parliament and we have said what is acceptable and what is not. As a general principal: We have to ensure that the European precautionary principle is not watered down! 

Europe HOpes: Is the precautionary principle explicitly safeguarded by the text of trade agreements such as CETA or JEFTA? Do you share Lobbycontrol`s concern that the result of the tool of regulatory cooperation under CETA may be that important legislative initiatives for consumer protection are either not at all presented to the EU Parliament or only in a drastically diluted version?

Mrs Westphal: No EU trade agreement can call into question the precautionary principle which is enshrined in primary law (Art. 191 Treaty on the Functioning of the European Union). In the framework of the Japan agreement the precautionary principle is for the first time explicitly mentioned in the text of a trade agreement (Art. 16.9) and as well incorporated in the context of regulatory cooperation. Hence, this agreement goes beyond CETA as the precautionary principle is now explicitly mentioned for the EU. I do not share the concern that anyhow diluted proposals on consumer protection could be submitted to the EU Parliament.