Speech by the Minister for Foreign Affairs, Mrs. Lene

Espersen, at reception for the Diplomatic Corps

March 19th 2010.Check against deliveryDistinguished Ambassadors and Excellencies,Ladies and Gentlemen,First of all, a warm welcome to all of you here at Eigtveds Pakhus. I am extremely pleased to seethat so many have managed to come here today. As Denmark’s new foreign minister, I lookforward to begin a close co-operation with you and with the governments that you represent. Afrank and regular dialogue between us for the mutual benefit of our countries is important. And Ilook forward to getting to know you personally over the next years.Apparently, the Danish press has also discovered that meetings between the Danish Governmentand the diplomatic community are important. At least, the meeting in January received a lot ofpublicity. Perhaps even a bit too much. To be honest, I was actually quite relieved this morning,when I woke up and noted that my two kids were perfectly healthy and ready for school, and thatno other private matter threatened our meeting today. Thank God, I thought!But the main reason, why I have been looking forward to meeting you today, is the fact that Ihave a few messages, I would like to convey in my new capacity as Denmark’s foreign minister.And the first message is one of continuity. I would like to underline that the active Danishforeign policy on a broad range of issues, which has been a hallmark of the Government since2001, will continue. Denmark’s willingness to confront international challenges in a pro-activeand direct manner will continue unchanged also when the going gets tough as in Afghanistan’sHelmand Province. And so will the commitment of the Danish Government to coordinate closelywith our partners and allies.Unfortunately, the fight against international terrorism and our efforts to reduce global warmingare not only about enhancing our security in the classical sense. They are instrumental for oureconomic security as well. If instability in the Middle East causes oil prices to skyrocket, or ifpirates are allowed to undermine commercial shipping around the Horn of Africa, there would bea price to pay for the Danish economy. They same is true, if sudden changes in the weatherpattern destroy peoples’ livelihood in parts of Africa or Asia, setting off large-scale movementsof climate refugees. In such circumstances, there would be economic repercussions for Denmarkas well.In short, ladies and gentlemen, dealing effectively with “hard” security threats that emanate farfrom our borders, is a precondition for creating a stable framework for economic growth athome. Because today’s globalised world is hot, flat and crowded as the American journalistThomas Friedman has put it, everything is connected, consequences are felt immediately, andthere is nowhere to hide. As a consequence, Denmark’s foreign policy will continue to requiremulti-tasking and a global outlook.Being the foreign minister, however, it is my job to make sure that the Danish taxpayer getsvalue for his money with regard to the role Denmark is playing on the international stage. It ismy job to evaluate ongoing policies and set new priorities, if needed. Having spent the last threeweeks since my appointment looking at what we are doing around the world, I have decided to

single out two priorities to be at the top of my agenda in the short term. The first one is that wework in common in the European Union, so the EU can play a much stronger role on the globalstage. This is not a new priority for Denmark, but it is one that appears more important than everfor a number of reasons, which I will get back to in a moment. My second key priority is to turnforeign policy in all its aspects into a growth engine for the Danish economy. Again, this doesnot constitute a dramatic leap into the unknown, but I will make certain that what we have beendoing already in this regard is beefed up and injected with a new sense of urgency.Let me briefly explain, why the EU’s performance on the global stage is so important today. Firstand foremost, there is a strong demand for the EU to take on a greater internationalresponsibility. Within the last couple of years alone, this demand has been on display in Georgia,where EU observers have helped stabilise the situation following Georgia’s brief war withRussia in August 2008. The demand was on display again during the gas dispute between Russiaand the Ukraine a year ago, where both parties called for EU involvement, and today, we see thedemand off the shores of Somalia, and in Afghanistan where European soldiers and policeofficers are training their Afghan counterparts.Secondly, the global financial crisis has accelerated a major shift in the distribution of politicaland economic power from the West to the East. From the US and Europe to China and India. Asa consequence, a new world order is emerging, which some observers are labelling the G2 tosignify the exclusive club of the US and China. Others have argued that what we are reallywitnessing today is the rise of the so-called BASIC-countries – that is Brazil, South Africa, Indiaand China. Either way, China is at the centre of things and Europe less so.The US and China will be shaping the global agenda in the 21st century. The question is, ifEurope will be able to do so as well? Basically, we need to figure out, whether we want to meetthe demand out there in the world for a stronger Europe or whether we should content ourselveswith being a secure, prosperous, but also irrelevant and inward-looking region.The well-known professor from Oxford, Timothy Garton Ash, has warned Europe’s leadersagainst choosing the second option – that is the inward-looking Europe - which he compares to aGreater Switzerland. Professor Ash says, and I quote: “The trouble with this is that, in the longerrun, by choosing to be only a Greater Switzerland we will gradually lose the conditions thatmake it possible to actually be a Greater Switzerland. For the point of having a European foreignpolicy is not power in itself, but the power to protect and advance interests that are increasinglyshared between all European countries, and challenged in a world of non-European giants.”In short, Professor Garton Ash is saying that because things are the way they are in Europe,things will not stay the way they are. We need to change in order to preserve. For by doingnothing we will decline, which evidently is a change, but a change we have not chosen. So if wewant to maintain Europe’s international position and our welfare societies, we have to changeour policies.After nine long years debating treaty reform in the EU, we are finally about to get the tool boxnecessary to make Europe’s voice heard loud and clear on the global stage. The Lisbon Treatywas an essential first step for a more coherent and more efficient Europe, but now EU MemberStates should make full use of the instruments in the tool box. The new EU External ActionService headed by Catherine Ashton must get off the ground quickly and begin its work ofconverting Europe’s economic leverage and democratic pre-eminence into political influence onthe global stage. More than anything, Europe is a community of values, and EU procedures andinstitutions must be structured in such a way that we become better able to communicate these

values to the rest of the world. Billions of people around the world look with envy at what we asEuropeans have achieved in the last 50 years and Europe can do more to bring democracy,security and economic progress to these people.Despite the doom and gloom that we often hear about Europe in the news media, we should keepin mind that the EU is still the world’s biggest exporter of goods and the biggest recipient offoreign investments. We are the biggest donor of development assistance in the world and theEU’s internal market consists of 500 million consumers with much greater purchasing powerthan Chinese or Indian consumers.Therefore ladies and gentlemen, the potential for a stronger Europe is there, but Member Statesshould make more room for Lady Ashton and her efforts to forge a more dynamic and robust EUforeign policy. If Member States continue the age-old habit in Europe of petty quarrels andnational rivalry, we will simply get squeezed by the US, China, India, Russia and others, whenglobal challenges like human rights or climate change are discussed.Turning to my second big priority – foreign policy as a growth engine for the economy – it is myintention to act as Denmark’s growth ambassador abroad. Growth is what the Danish economyneeds more than anything else today, and as foreign minister, I will do my utmost to ensure thatDanish companies get a much stronger presence in the new growth markets outside Europe.Markets like China, India, Brazil, Mexico and Vietnam, where I hope that the EU will help pavethe way by concluding bilateral agreements on free trade, while we wait for a global free tradeagreement in the WTO. Growth is also about influencing the international framework conditionsthrough multilateral organisations like the UN, the EU and the IMF. In this context, I will workhard to create a better business environment inside the European Union and a more effectiveSingle Market, which still take almost 70 percent of Danish exports.Drawing upon the experience from my previous job as Minister for Economic and BusinessAffairs, I will co-operate closely with Danish companies on issues like market access, tradeliberalization, innovation and marketing of Danish goods and services. I also plan to spearheadvisits by Danish business leaders to key export markets in the near future.Growth, ladies and gentlemen, is the talk of the town in Copenhagen these days. Growth is at thecentre of a new strategy adopted by the Danish Government called “Denmark 2020”, which isaimed at bringing Denmark up to speed with globalisation in the 21st century. It is also at thecentre of a new strategy for the Trade Council here in the Ministry of Foreign Affairs. With thestrategy, the Trade Council will aim to help Danish companies increase their exports by morethan 25 billion dollars during the next five years as well as create 5000 knowledge-based jobs inDenmark by attracting more foreign investments.Of course, Denmark will not be able to push the “growth-button” alone. As a small country withan open economy, we are very dependent on Europe getting back to a solid growth track.Therefore, I am happy to note the high level of agreement and synergy between our own nationalstrategy – the “Denmark 2020” – and the new economic proposal from the EuropeanCommission called “Europe 2020”. The similarity is not just in the names. Both are focussing onknowledge-based growth, a transformation to a green economy, more investment in research andgreen technologies, flexible labour markets and getting more young people to stay longer in theeducational system. Neither Denmark nor Europe will be able to compete with China or India onprice. It will never happen, and there is no point in trying to go down that road. We can only besuccessful by competing on knowledge, innovation and a multi-skilled workforce.

Luckily, we enjoy a comparative advantage here thanks to Europe’s strong technology base andambitious climate and energy policy. We must now make an all-out effort to build upon thisadvantage in the coming years. Before we get to 2020, however, Europe needs urgently toconfront mounting public deficits, rising unemployment, a declining ability to compete, too lowbirth-rates and weak domestic consumption. At present, Greece might be dominating theheadlines, but these economic vulnerabilities are shared by EU countries across the continent.The financial crisis has been merciless in exposing our economic weaknesses in Europe. A man,who knows a thing or two about wealth creation, Mr. Warren Buffett, the world’s third richestman, has captured Europe’s current predicament this way, and I quote: “It's only when the tidegoes out that you learn who has been swimming naked." To various degrees, some more thanothers, but all guilty of a little exuberance, European countries forgot their swimming pantsduring the economic boom years that lasted until 2008. Now, we have to get the swimming pantsback on quickly in the form of fiscal sustainability and economic reforms, so we can exit fromour stimulus policies in an orderly and coordinated way.Ladies and gentlemen, I have tried to outline two key priorities for Denmark’s foreign policy inthe short term. For both of them to materialise, Europe will need to move. Therefore, let meconclude by giving you a short fable that illustrates what is at stake, if we the 27 EU MemberStates don’t pull together and start to move our common enterprise called Europe. The fable goeslike this:Once a crayfish, a swan and a pike set out to pull a wagon,And all together they settled in their traces;They pulled with all their might, but still the wagon refused to budge.The load it seemed was not too much for them;Yet the crayfish kept crawling backwards, the swan headed for the sky, and the pike movedtowards the sea.Who is guilty here and who is right - that is not for us to say;But the wagon is still there today.Thank you.