EU Ambassador Bruton Speaks at ACCF Capital Formation Forum

American Council for Capital Formation
March 15, 2006

The EU Ambassador pointed out that the $2.5 trillion EU-U.S. transatlantic economy represents the largest, most integrated and longest-lasting economic relationship in the world, supporting 14 million jobs, half of which are in the United States. The U.S.-EU economic relationship dwarfs America's economic ties with China. EU companies are the single largest foreign investor in 45 of the 50 U.S. states and rank second in the remaining five and Europe provided 65 percent of all foreign investment in the U.S. in 2003. "Anything we can do to facilitate investment between the U.S. and the EU is good," Ambassador Bruton said, adding that foreign investment is the backbone of the EU-U.S. economic relationship. "Minimizing regulatory costs is one key way to encourage that investment," he said.

EU Ambassador John Bruton

Assessing some of the differences between EU and U.S. approaches on political and economic issues, Ambassador Bruton pointed to the differences between the EU/U.S. perspectives on climate policy. "Poverty and disease, especially in less developed nations, are far more urgent problems than climate policy," he said, stressing that "it is possible to deal with both poverty and disease and with climate policy at the same time." The EU approach to climate policy involves setting limits on emissions and imposing penalties when the limits are exceeded. The U.S. sees investment in technology as the way to promote emission reduction and does not impose penalties, an approach that he believes does not necessarily lead to reduced emissions.

Since the Kyoto Protocol expires in 2012, Ambassador Bruton emphasized that the EU and the U.S. need to examine what can be done in the future to control global emissions. "Progress on climate policy beyond 2012 will require a commitment on emissions from emerging economies," he said.

Although the EU has been a "good partner" to the U.S. in the war on terrorism by sharing intelligence and cooperating in other ways, nevertheless there are differences in views on some critical issues. For example, on the question of detainees, the EU believes that the Geneva Convention should prevail. The EU and the U.S. are in a dialogue on this issue, Ambassador Bruton noted, adding that although an immediate reaction by a nation to a terrorist attack will be different, now that time has passed, a more appropriate response should be developed. It is "important that Europeans and Americans set an example by avoiding double standards," he said.

Trade is another area of dialogue between the EU and the U.S. The EU Ambassador said he hopes the current round trade talks will be a success and will encourage the opening of new markets and avoid any possible psychological setbacks. The 25 EU countries face other economic challenges, he said, including the need for a more stable energy supply and greater energy security, an increase in energy efficiency by placing greater emphasis on electrical grids, and new agreements in the aviation sector that could promote air travel.

Ambassador Bruton is a former Irish Prime Minister (Taoiseach), who helped transform the Irish economy into the "Celtic Tiger": one of the fastest growing economies in the world. During his time in office (1994-1997), the Irish economy grew at an annual average rate of 8.7%, peaking at 11.1 % in 1997.He was also deeply involved in the Northern Irish Peace Process leading to the 1998 Good Friday Agreement. While Prime Minister, Ambassador Bruton presided over a successful Irish EU Presidency in 1996 and helped finalize the Stability and Growth Pact. Before being appointed Ambassador to the United States, he served as a leading member of the caucus that drafted the first-ever European Constitution that was signed in Rome on October 29, 2004 and is now before the 25 EU Member States for ratification.