 Good evening ladies and gentlemen and welcome to this press conference from the second day of the 48th annual meeting of the World Economic Forum here in Davos Yesterday was a little bit the Indian Canadian day, and I'm not telling you a secret if I say today was quite a European day at the annual meeting here in Davos Of course not exclusively, but with a heavy European footprint I think that is fair to say and therefore we're very happy and delighted to have a wonderful panel To talk about Europe and talk about the future of Europe here today and without further ado Let me introduce that wonderful panel to you. My name is Georg Schmidt I'm the head of corporate affairs at the World Economic Forum and welcome to everyone here in the room Those of you watching the live stream whether in Periscope Facebook or on websites and of course welcome to the fantastic panel To my immediate left were joined by Martina Lakin. She's the head of regional strategies Europe and Eurasia She's also a member of the executive committee of the World Economic Forum to her left We're joined by Pierre Carlo Paduan the minister of economy and finance of Italy right at the heart and center of our panel We are joined by also La Fonda line the federal minister of defense of Germany And if I might add also a member of the board of trustees of the World Economic Forum Welcome to her left. We're joined by Emma Marchegalia the chairman of AENI in Italy and last but definitely not least Completing this evening's panel is Jörn Wieg Knutstorp the executive chairman of Lego Group, of course from Denmark Thank you very much for being here Martina let me hand over to you first and ask you for a brief introduction Especially also for our live stream audience What is the forum doing in the field of Europe the title? We gave this press conference humbly as usual as the forum a fresh start for Europe Please share with us some thoughts on the forum's work. Thank you. Yeah, and it's a pleasure to be here Certainly after today's Programming Europe programming we can say Europe is back. It was very Strong messaging from a number of of European political leaders and business leaders in the programming today So it seems very timely that we launched this report on renew Europe This was an effort that we've launched last year It was an effort over several months where we worked with a policy group on five different themes on security in migration economy democracy, but also energy and sustainability and Most importantly also a group of youth from across the continent that are attached to to our shapers community And we developed new ideas, but also very concrete Action points and aspirations for the future of Europe what Europe could look like in the future from a perspective of the next generation and Perhaps there's three key conclusions There was a number of ideas coming out of this on sort of universal learning rights and digital IDs and and ways to You know make Europe much more sustainable, but also take global leadership in the space of security But perhaps there was three cross-cutting themes from our perspective one Certainly, which came through very strongly also from the youth communities was that Europe needs to stand up for its values and That youth feels there needs to be much more commitment to European values of Openness diversity, but also collaboration and cooperation solidarity secondly the the fourth and last revolution and Europe's leadership in really embracing this and taking a leadership role in shaping the digital economy Shaping the way we're dealing with artificial intelligence robotics and all these new technologies that are shaping the economy society at large and then perhaps Thirdly was a sense of urgency that 2018 will be an extremely important year for Europe We still have the Italian elections coming up and of course the German government is not entirely formed yet So there's a couple of still I would say challenges ahead But in general we can certainly say that there's much more positive momentum on the economic front on the political front Then we had last year at the same time And we think we want to you know Really take on this momentum take on some of these reform efforts that have been proposed by the French president and German chancellors and others and Really show also that there can be results as we go into 2018 for the citizens who really demand also a different approach to the future of Europe Thank You Martina Minister Paduan my colleague mentioned challenges Maybe I might invite you to share some ideas on what's being done to address these challenges from an Italian perspective Yes, and thank you very much for this opportunity Well, first of all, let me start exactly from where Martina ended and maybe rephrase the point Europe is facing a very large larger than expected window of opportunity because of stronger growth because of the fact There's growth is being pervasive. It's cyclical But in my view getting structural which means it will last longer than expected if we don't make big mistakes Which is always possible given policy makers apologize for the class But there are this window of opportunity offers the possibility of dealing with what I would call three challenges and opportunities for Europe at large first of all Strengthening growth in a way that takes into account in the medium to long term The fact that demographics work adversely against Europe in a number of ways Meaning that demographics alone cannot support growth and at the same time We need to make a Europe much better suited for young people, which means that growth must essentially go through More technology more innovation more education more skills And this requires an effort which so far in my view has been too much only at the national level and too little at the European level I like to mention when I speak about these topics the notion of European innovation Union bringing together all the elements be they economic but also social educational technological that are needed to Nurture education innovation and create productivity benefits and jobs So this is the first challenge the second challenge Which is very much in the agenda of finance ministers nowadays is completing monetary Union and Especially this means especially in the media term completing banking Union which may sound as a very technical issue for many But it's actually a way to provide additional and final stability to a further integrated economy here There are differences among countries views, which is inevitable when you go from great principles to details But I am confident that European countries can strike a balance to find a better monetary Union working for them and Working not just for them the 19 members of the European Monetary Union, but for all the 27 members of the European Union To a number of ways first of all because a stable eurozone Provides stability for Europe as a whole and secondly because there are a number of issues in which all 27 countries must be involved Starting with banking Union itself and capital markets Union the third challenge is About what I call as in a shortcut production of European public goods There are challenges which are now by definition immediately European in other words There are challenges which cannot be addressed only at the national level because if they if that's the case It will are there bound to fail and European public goods that come to mind are almost obvious one Which is of course See the involvement on many countries Represented the stable migration issues, which is a broader issue and compassing not just border control, but deeper integration Principles of countries that are now sending Population in a way towards Europe and this must be addressed on a European basis security, which of course takes up unfortunately new forms and new threats which require collaboration of technological level as well as as security is strict to sensor and defense I think that were progress on building elements of a common defense system are elements that can reinforce Union towards more to a deeper integration including at the political level and last but not least in my short list is Investment in innovation which is related to the point I mentioned earlier Why am I mentioning these public goods because now the time is right ripe to introduce explicitly these public goods as items of the renovated EU budget we are we are now approaching the time needed to very fast by the way the multi-year financial framework and it is time to start introducing not only Resources but also concepts that have to deal to be dealt with at the European level One final point 30 seconds on my country if I may Italy is also facing a window of opportunity because of the reasons I mentioned and because It has been producing four years of stability and reform and structure reforms Which are delivering very important results in terms of growth stability and welfare I hope that my country will be able to continue But I'm convinced will to continue to work in a stability environment so that the good work that has been Achieved so far is reinforced going forward. Thank you Thank you minister pattern. Minister von der Leyen your colleague rightly mentioned that there can be no sustained growth and no stability without Security and a robust defense. I'd like to invite you to add your thoughts to his comments, please Yes, thank you so much It was interesting to hear that the European youth is Calling for Europe to stand up for its values as you said and indeed the European population and mainly young people in Europe ask Europe to care for the large and huge challenges and To be active on this field and of course if you want to stand up for your values values of democracy the rule of law The protection of human rights and human dignity You need a strong Europe that is well organized and that is able To tackle conflicts and crises Mainly in his neighborhood if you look at Europe, it's surrounded by a arc of crisis whether you look at fragile states in Africa or at the conflict and civil war and the terror in the near and Middle East or the hybrid war in the Ukraine and All over the place was when these conflicts started a strong call for Europe Europe and European defense and security This is a long story Europe once started in 1954 with defense and then it failed completely four years later and from then on it was a sleeping beauty for at least 50 years Now in this time of crisis Europeans woke up and understood that Nobody will solve the problems in our neighborhood for us We have to organize ourselves. We have to stand up and we have to be able to create a European Defense Union This is what we did last year in December it was already Encapsulated and the Lisbon Treaty but never activated We now activated in this time of action the call for action the European Defense Union 25 of 27 European countries joined it is ambitious it is inclusive and It shows a strong will to be able to Have a strong European voice in Conflicts in our neighborhood. What is the European voice the European voices of course on one hand the ability to Send troops for stabilization but always combined and linked with Reconciliation Demo diplomat diplomacy and diplomatic efforts and Reconstruction and Stabilization Economic development. These are tools that are unique in The European tool set and for the very first time we were able now with the European Defense Union. We're building up to bring these different strengths together and to apply them in a Coherent and consistent way. We created a headquarter We are on our way to fill the European Defense Union with life with projects We are on our way to build up a European Defense Fund and we have a planning process That obliges all of us to really harmonize all planning in the fields of security and defense So if the young people are calling for action We are on our way to deliver a bold action what European security and defense is concerned Thank you very much minister Senora Magigalia, I've been in Davos For the sixth time now and every year the story about Europe is a different one We've gone from crisis to post crisis to recovery to boom Careful optimistic. Where do you see Europe at the moment from a private sector perspective? Well, thank you. Well, first of all, let me say that I'm very happy that In the documents and also today we are back and we are talking about European values I think this is very important because Sometimes these values are given from granted But I think this is also time to underline that these Values are important one and I was very happy also to see in the documents that young people in Europe Things that these values are very important. So first of all, I think it's important to say this From an economic point of view. I think we can say that we are out of recession We are living in Europe I say a good growth, of course is never enough but The growth this year was around the 2.3 percent the projection for next year and for the next two years They say it's more or less the same There has been over nine million jobs created since 2012. This is something of course unemployment is still high, but is the rate of unemployment is going down. I Agree with Mr. We've been a step out on saying that yes, this growth is for part is cyclical But we have also some elements that can make the the growth more fundamental So if you think about also how investments are going Export is very strong. So there are also elements where we can say that our growth is is fine So the situation is better compare with the previous years as you said also the political situation I think in Europe is much better We had some elections at national level that were very good France at the Netherlands Also Germany now we hope that this coalition government will be formed and also in Italy I totally agree with our Prime Minister Gentilonis saying that if you look at Italy, we never had difficult situation our foreign not we had a lot of difficult situation, but if you look at our foreign the foreign Policy or whatever always been very pro-European. So whatever will be the outcome of the election I mean Italy will remain European and I think the reforms we're going on So I think also from a political point of view Europe is in a better situation As it has been said, I think we don't have to be complacent with this saying okay Everything is fine. Just sit down. I think we have to see this as a window of opportunity I think a reforms must go on both at national level and the European level and I think also at the European level We have a year where we can really do some Step forward. We have one year more or less from the next Election of the European Parliament and I think there are some points where we really need to make progress I agree on the points that Minister Pado on set. So education the economic monetary union Defense security immigration. I will add trade I think in this situation where there is a lot of protectionism coming back I think it's very important that Europe stand as a very open market and as a really Continent that believe in open trade and in order in open market I think it's also time where Europe takes also responsibility for example towards Africa. This is very important And the second thing I think we have to be very strong in the industrial policy Linked with industry 4.0. We are a little bit ahead Or some things on something we are a little bit, you know, not in line We for example, what's going on in the US and China? But I think this is time to really become very strong and took the leadership and take the leadership on industry 4.0 So I think we have the opportunity to do that There is this window of opportunity I think it's very important that we take the leadership and we really deliver To the European cities and a lot of good results on that Thank you very much. I think when you mentioned the formation of the German government I think I heard some thunder from above. So it's good that there's that we're making progress there Jürgen, let me turn to you Martina mentioned when she when she gave the highlights of that report and the highlights from that conversation especially with the young Europeans She meant mentioned skills and education and she mentioned sustainability And I know that these are issues that you feel very strongly about maybe you can you can add your perspective on that, please Certainly, I'm delighted to I think when we talk about equipping citizens with required skills, we actually need to go all the way back to childhood Because the skills that our workforce in the future requires is actually the skills. We're born with children are natural Naturally curious their natural learners they explore they take risk They experiment and they adapt and learn Extraordinary quickly. That's why when you're four-year-old you can be Acting as if you were the president of the United States But 25 years later you have to go to acting school to be able to do that because you've forgotten how to be playful and creative So we need to start looking at childhood and how we nurture Through early childhood and all the way through our education systems the ability of European citizens to continue to be learners who are curious and willing to adapt new skills Because where technology will take us in the future will make it impossible For the education sector to give us an education in our youth that remains relevant for a period of 20 and 30 years The European workforce of the future needs to be able to constantly adapt to constantly take in new skills And that takes almost sort of a neurological order where you're capable of unlearning things and learning new things and being playful It's actually the key to be able to do that. I Really welcome one of the specific Elements of big ideas in the Renew Europe report that talks about the universal right to learn I think the idea of giving human specific skills such as creativity collaboration critical thinking Add to all citizens of Europe and enable young people and adults to acquire the skills That are essential in the future is a wonderful idea Think about it. What is the technology enables us to do? Technology is very good at what we're very bad at computation prediction calculating on big numbers doing analytics But machine learning and artificial intelligence is very bad at what's very easy for us common sense caring Love those kind of qualities the creative thinking the lateral thinking the Unexpected insights are the things that human beings will always be better at so we need to nurture that in the European education of the future I want to just wrap up by giving a few remarks on sustainability I think anybody who talks to the young people of Europe know that they have high Expectations to our ability to build a sustainable society and therefore the future of business in Europe has to be based on 100% renewable energy and the consumption and recycling of sustainable materials Such that we leave a better future behind for future generations Then simply creating a world that's worse off from an environmental and sustainability perspective and young people of Europe Are expecting this this is not something we can deal with in the future. It's something we need to address now Thank you. Thank you very much Let's open the floor for a quick question and answers. We have microphones if I could see a show of hands If there are any questions, yes right in the center We have a question if you could say your name and organization for the sake of the honor and all sure Florian either from political Ministers or I'm interested in everybody else's view. We heard a lot of multilateralism today in the speeches of Prime Minister Gentiloni of President Macron and of Chancellor Merkel That seems to be the new consensus where Europe rallies around so my question would be to what extent was was President Trump helpful or Needed to for Europe to come back and to be back today on center stage Thank you very much. Should we take a second question? Yes, there's a gentleman over there Microphone is coming again if you could state your name and organization, please. Yes, Thomas. I thought we know Titan The Rosa picture your painting is certainly reassuring for European citizens, but what about the European values that you mentioned What about Hungary or Poland or to a certain degree even Romania? What does your report say on that or what is your comment on? European values that maybe in some countries are not really that valued Thank you very much and there's a third question from the gentleman there if you could add that, please. Yeah Alessandro, especially Bloomberg news Two questions on the European optimism for Minister Padwan The first one is how does the European? continent plan to respond from the protectionist noises that are coming from the Trump administration and the second question is You have painted an optimist picture of what Italy has achieved in the last few years Can this continue if there is a Stold parliament and if there is no majority as the outcome of the upcoming elections. Thank you Thank you very much So I might add that there will be tomorrow a press conference with the Prime Minister of Poland as well And as we know the president will be speaking on Friday, so Some of these answers will probably get in the remainder of the week and nonetheless Who of the panels wants to Minister Padwan? I think the last question was particularly addressed at you Maybe you want to start with that? Actually, I understand I have two questions to answer but Well the issue of Protection Strikes me as a Threat For many years, we have been witnessing Move towards greater multilateralism global governance addressing together Advanced and emerging economies for instance to the G20 global issues and now the fact that very significant fact that today We are discussing about possible protectionist threats and what is Europe willing and able to do to respond Sounds to me worrying as a sign of concern and therefore the need to respond Europe is a global trade Partner It is its growth has been based on internal integration and external opening So it's in the immediate interest of Europe to have open markets and a global governance If there are other countries that think that this is not their case Well, then Europe must put on the table the fact that Although there might be individual measures that themselves may not be quote-unquote harmful If they strike at other countries What concerns me is that History shows that if you start with a little move towards more protection Then a possibility is that there is a tit for tat Scenario by which these moves are Rated and replicated with true retaliation so my plea and I'll stop here on this question is that Europe takes the opportunity of Finding again like in defense like the minister mentioned in defense find a solution Which is not aggressive in terms of trade relation, but it is peaceful and cooperative Of course while having in mind that there are interests to defend Very quickly on Italy The Italian economy is now on a healthier growth and stability course Which has a self-fulfilling moment in my view because of past measures that are beginning to show their impacts in terms of structural change In terms of benefits from lower taxes This path may be put in question if there is Political uncertainty lasting for too long which determines is an interruption of or say investment I do not think this will be the case I am confident that the fundamental strength of the Italian economy, but also Italian society will Give very little room to situation to be political situation where there is what I call the terminator syndrome meaning eliminating what has been done Well in the previous in the previous past rather strengthen what has been done Thank You minister who would like to answer Floyd and Ada's question on did it take the external pressure of President Trump's agenda For Europe to come together. I Like to answer that because in the field of defense It was a typical situation If we were talking about a Europe that protects I Just mentioned that we had Embedded in the Lisbon Treaty always the idea or the vision of the European Defense Union the so-called permanent structured cooperation, but it was sleeping there and nobody ever triggered it or activated it and What we saw was when a crisis hit That even if the political will was there The European Union was not able to respond quickly and fast enough because we had neither neither the structures nor the procedures To be fast in a crisis if you look at Ebola it came fast We were supposed to react as Europeans We were unable because we didn't have the structures and procedures so everybody went on a national basis We started a phone call from one nation to the next and we went over To to help with Ebola same with Mali when Mali was about to collapse Europe was not able to react it needed the French initiative to prevent the worst Just to name two examples. So we had the theoretical frame, but it was we couldn't bring it to life we Started therefore Right around the Brexit referendum because our British friends always opposed any kind of common European defense we Germany and France started an initiative and I will never forget that it was at the height of the refugee crisis in 2016 that we had a very poor response skepticism of other European countries who didn't give a dime on Europe to be able to really maneuver and to step forward and then came the 8th of November 2016 and the election of the American president who had said NATO's obsolete and This was a turning point because This made clear this was the wake-up call to all Europeans if you do not care for your own problems if you are not able to construct a Frame that is as sufficient that you can handle your problems Nobody else will solve the problems for you and that was the point from which on with a huge Emphasis and huge momentum we were able in a record time of a few months To indeed build the European Defense Union the so-called permanent structured cooperation all the tools I just mentioned so in a certain way the election of the American president reminded Europe That it is time to step up and to take on Responsibility on our own shoulders. It's in our interest Thank you. Emma. You want to add to that? Yes on on multi-racialism and Trump. Well, I think The the the right design when you talk about trade is to have a multilateral agreement So that WTO is you know, the body who has to to to implement that and on the other hand I think it's normal and it's fair that you also have some bilateral good bilateral FTA. So now the question is that It seems that US will not Stay with the rules of WTO I think it's very important to say that some of the rules of WTO probably has to be changed because these three will has be designed and shape some decades ago when digital was not there where e-commerce was not there where industry 4.0 was not there. So probably we need some reforms at WTO level, but the question is that that you don't have to answer by saying I don't respect the rules, but the the question is or the answer is you have to stay within and Reform the rules. So this is what I think Europe has to say very clearly to to to to to us I Was in a table with The secretary Wilbur Ross. He said something interesting because he said that he want to go on with t-tip This was the first time I I hear this. I don't know if it's fine, but he said this So my question my point is that I don't think we have to fight against us I think we have to talk to them very clearly I think we have to have a very clear and unified position in Europe and and saying also very clearly that if the aim of The US is to punish China if they disregard themselves from the multilateral Rules what happened is that they will give more force to China because China will be the one who will really play and shape The new standardization the new standard for the next future So I think we have to talk to them and I have a very clear and strong position on this point Thank you very much, and there was one last question from from the Vina Zeitung Whether the discussion about values is indeed equally let in in all of Europe Does anybody want to comment on that? Martina, maybe you want to point out that the that the group that worked on the report was also including these countries Maybe you can elaborate on that. Yeah, we did have representation from our hubs in those countries and clearly there are differences of opinion, but You know generally the next generation really has New demands I think to the to the leadership of of Europe both the private and public sector But also Europe needs to recognize that perhaps Not only the values are important But also what people value in Europe needs to be perhaps more obvious How can Europe provide value to its citizen? Why is it meaningful? Why do they need Europe and this is maybe also something that needs to be looked at Across the board and across the different Topics that we've discussed today and maybe in some areas like secure and defense it is much more obvious Where there is a collaboration needed across the continent and perhaps in other areas there can be more national solutions to To some of the the challenges Well, I think Europe rose is one of the basement of democracy So when you don't have you don't respect your load, this is a problem. I think the European Commission take a strong position on that They they they Send these countries and Poland and Hungary to the court. So I think I mean, it's impossible to have An integrated Europe without the respect of the EU of law. I don't have any doubt on that so Yeah, maybe we can get one last question from the gentleman here. I think then we really have to close and But please a Question on China. So today there is also this speech by one of the the key Economic architect from China I recently also had an interview with the number three at ECB Ben Benua quite the Frenchman He added actually added a political point saying we are not one of those countries that is against trade with Europe now coming back Economic and but also politically we can join hands with China to provide stability for the world So I'm just wondering especially for the two ministers Given Liu his speech today Mentioning about Implementing a lot of financial opening measures within this year and also Expending import to get a more balanced current account in China Does it give you more confidence to work with China going forward? In the past few months, there has been some challenges It's actually on investment. Thank you very much Quite a complex question Do we have any volunteers? I think the the the key question here is Europe's collaboration with China. How confident are you? Well, I cannot comment on the complex economic Issues you just mentioned but We're talking here about multilateralism. This was a word that occurred often and The pictures we painted was of course about Europe But this goes for the whole world China's an important player and If we want to solve problems We need all Important players at the table of course the United States Of course China We will deal with Russia and Europe wants to be a strong voice in This concert. We have other important players. I didn't mention now but I think it is a in this Session here in Davos you see The crucial question Are we convinced that multilateralism is The way to improve the state of the world my answer is yes or Is somebody convinced that nationalism and isolation and protection protectionism is the answer my personal view is a No, does it mean that multilateralism means always we have the same Views on topics. No, it doesn't have to be but we are on a basis that we want to deal with difficult topics together and We have issues with China without any question and we have to debate about these issues But we always think it is better to have a strong European voice a One European voice But that is speaking with other Huge players in the world Thank you very much. So there's optimism in Europe But a lot of work remains to be done which also means that I now have to release My panelists to let them get back to work. Thank you very much for being here this evening Thank you very much for being here in the room and thank you for our live stream audience for watching. Thank you