Europe needs friends and allies in a world of ever-increasing geopolitical and geo-economic tensions. 

By Jens Ruebbert

November is an important month in global politics. There was, of course, the not-small matter of the US elections, the result of which will, no doubt, have a major impact on geopolitics and the global trading order if the last Trump administration is anything to go by.

For Europe, there is also an important event happening at the moment: the European Union will formally approve its new College of Commissioners—key political office holders who will determine Europe’s trajectory over the next five years. This might not garner the attention of the global media that the US elections have, but it is, nonetheless, still of vital importance.

While the confirmation hearings are very much a European political event, it should also matter to the Southeast Asian region, as commissioners play a central role in shaping the EU’s external policies, including trade agreements, climate action, and geopolitics—all areas where member states of ASEAN have significant ties with the EU.

Unfortunately, ASEAN has not featured prominently in these discussions. That is disappointing, as the region should matter to the incoming commissioners and the broader European institutions sitting in Brussels and Strasbourg.

Even more so given the outcome in the US, as we are now likely to have an administration that will take a very transactional outlook to external trade policies and could see a decrease of US involvement in the region, creating a void that Europe should be stepping into to allow ASEAN to have balance in its external relations.

Furthermore, Europe needs friends and allies in a world of ever-increasing geopolitical and geo-economic tensions. Working closer with a bloc like ASEAN—whose values and objectives align closely with those of the EU—should be a strategic priority.

However, other than the many mentions in the EU’s Indo-Pacific Strategy document, ASEAN has not been featured nearly high enough on the agenda of much of the Commission. This has to change.

ASEAN should not just matter to the Trade Commissioner-designate, Maros Sefcovic, but also to the commissioner-designates for other key parts of the Commission, such as International Partnerships, Digital Economy, Environment, Transport and Mobility, Health, Energy, and Financial Services.

The reasons for the interest of the Directorate-General for Trade should be obvious. But, disappointingly, the mission letter from the European Commission President, Ursula von der Leyen, to Sefcovic did not mention ASEAN once.

This is despite there being ongoing trade negotiations with Indonesia, Thailand, and the Philippines, with the possibility of Malaysia joining them at the negotiating table in the not-too-distant future.

Forging closer economic ties with these key partners in one of the few parts of the world that display dynamic and fast growth should be at the top of the list for the incoming Trade Commissioner.

This is not only due to the ongoing negotiations but also because stronger ties will help Europe in enhancing its supply chain resilience and aid a fast-developing region to navigate its green transition and economic integration agenda.

As for the other Directorates-General—similar to departments or ministries—in the Commission, it is the view of the EU-ASEAN Business Council and its members that they should be giving ASEAN more attention.

The current EU-ASEAN Plan of Action, agreed upon at the Commemorative Summit marking 45 years of relations between the two regions in December 2022, sets out a whole raft of areas where the two strategic partners are meant to collaborate and cooperate. Action on the ground, though, seems few and far between.

Key sectors calling for attention

The department overseeing international partnerships has been instrumental in supporting ASEAN through numerous projects focused on areas like economic integration, the green economy, energy transition, and critical infrastructure development.

But despite hundreds of millions of euros that have been poured into these initiatives, they remain under the radar. This is to the detriment of Europe’s interests in the region.

ASEAN’s other dialogue partners, who give much less in terms of aid and development donations, tend to shout louder and longer about their generosity.

For the Directorate-General for Environment, the diplomatic uneasiness that has been created by what is perceived in Southeast Asia as high-handed approaches to sustainability-linked regulation (read: the deforestation regulation or EUDR) means that any commissioner taking on that portfolio should be looking at international outreach as an absolute priority.

The decision to delay the implementation of EUDR is welcomed by many. This delay period should be dedicated to reaching out to countries like Indonesia and Malaysia and finding a way forward that is a win-win for all.

The EU’s absence at the recent ASEAN Ministers on Energy Meeting was jarring, as other dialogue partners were clamouring to offer assistance and advice to a region rapidly moving ahead with energy transition and having high ambitions to develop its regional power grid.

Given the EU’s experience in implementing an integrated electricity network and in developing renewable energies, the Directorate-General overseeing energy issues should be working closer with ASEAN.

Meanwhile, for digital connectivity, ASEAN’s objective of completing a groundbreaking region-wide Digital Economy Framework Agreement should, on its own, be enough to spark a higher level of interest in DG Connect.

On the transport side of life, there is a need to build on the excellent, and first, region-to-region air services agreement between Europe and ASEAN. The Comprehensive Air Transport Agreement is a real and tangible statement of what can be achieved between the two blocs.

With connectivity at the forefront of both blocs’ transport and infrastructure needs, there are obvious reasons to work closer together on maritime and rail projects and help bring the Global Gateway to life.

And finally, but by no means least, there are financial market developments. When the ASEAN finance ministers and central bank governors meet every spring, the World Bank, the International Monetary Fund, the Asian Development Bank, and a host of dialogue partners are present—but not the EU.

Yet, there are areas where institutional involvement, through the European Investment Bank, for example, would be beneficial: driving closer alignment of taxonomies; helping with the development of sustainable finance and access to funds; implementing international compliance regimes; and the development of digital cross-border payments.

As European Council President Charles Michel said at the recent East Asia Summit in Laos: “More cooperation and more coordination lead to more benefits for all… the spectacular success of Asian economies in recent decades has benefited the wider world, including us in Europe.”

These words should serve as a guiding principle for the new College of Commissioners. It is essential that they not only recognise ASEAN’s growing importance but also take proactive steps to engage with the region: travel more to ASEAN, meet their counterparts, and improve cooperation and coordination with Southeast Asia.

Only through these efforts can the EU fully capitalise on the opportunities presented by ASEAN’s dynamic growth and its strategic significance in the global landscape.

The writer is chairman of the EU-ASEAN Business Council

Jens Ruebbert, 
Managing Director & Regional Head Asia/Pacific at LBBW

Photo: The European Parliament in Strasbourg, France. Europe needs friends and allies in a world of ever-increasing geopolitical and geoeconomic tensions. (AFP)
Screenshot: Business Times Singapore

Business Times Singapore