EU ambassador explains reforms

European Union ambassador to Australia and New Zealand David Daly in Dunedin with his wife Aideen...
European Union ambassador to Australia and New Zealand David Daly in Dunedin with his wife Aideen and children Aiden (16) and Ceola (11). Photo by Linda Robertson.
European Commission ambassador David Daly has fulfilled a long-time wish to visit Dunedin, the former home to a colleague and boss. During a tour of the city with his family, Mr Daly stopped in to chat to business editor Dene Mackenzie about the state of the Union.

European Commission ambassador to Australia and New Zealand, David Daly, quickly admitted his visit to Dunedin this week was not entirely by accident.

During the previous weekend, Mr Daly was attending a seminar held at the University of Canterbury by the European Centre, which is also affiliated to the University of Otago.

Coincidentally, the seminar coincided with the school holidays of Mr Daly's children so he packed his wife and two children into a campervan and headed south.

After spending a morning at the University of Otago with political students, Mr Daly called into the Otago Daily Times to spread the word on the reforms which he says are taking shape in Europe, particularly the European Union.

The headlines did not tell all the story and Mr Daly felt the need to respond firmly to questions regarding what many are starting to believe were the last rites for some of the 27 European Union member states.

"There is mythology about the European Union that needs to be addressed. People in Europe are angry.

"They feel let down by politicians and are asking why they are in this mess and why it was not avoided."

The results of that anger had been seen in changes of government, and that was a natural democratic manifestation, he said.

Protests had been seen in the street, and that was also a democratic function.

At the sharper end, there had been riots and deaths and they were signs that people were hurting and a response to the seriousness of the measures the governments were introducing.

However, it would be a mistake to think the acts at the extreme end of protest were mainstream.

The mainstream reaction was people feeling angry but recognising the attempts to rebalance the economies and getting on with their lives, Mr Daly said.

Dunedin had been on Mr Daly's list of places to visit for many years.

One of his bosses, who quickly became a valued friend, was Michael Lake, whose "granny" ran a restaurant in Dowling St.

Mr Lake was a keen surfer, who attended Kings High School before heading overseas as a lad to work as a journalist for The Scotsman and the BBC.

Eventually, Mr Lake moved into the communications sector of the European Commission, serving in New York before becoming the EU ambassador to Turkey.

Rating Mr Lake as "a wonderful man", Mr Daly was determined Dunedin was one place he was going to visit.

But just because Mr Daly was on holiday, did not mean he would let the ODT off lightly when it came to questions about the future of Portugal, Italy, Ireland, Greece and Spain - the PIIGs of the union.

The day Mr Daly visited, the ODT covered stories about the souring of Greek capitalism and Spaniards tiring of seeking penitence.

Mr Daly said those countries were being unfairly singled out in a union of 27 countries which were dedicated to solving the economic crisis.

While not playing down the seriousness of the situation, he pointed to the European Union emerging from two quarters of a mild recession and indications that growth across the whole would be slightly less than 1%.

"In this context, that is a major positive."

Life for the PIIGS was still tough, and things in the United Kingdom were not easy.

But overall, the figures showed the crisis was not as bad as it had been.

Within the union, some countries were doing well while others struggled.

But the collective nature of the union meant it had the ability to solve the problems of countries like Greece through taxes and levies.

Asked about the access of New Zealand exporters to Europe because of, among other things, the high value of the New Zealand currency, Mr Daly said that was aligned to the strength of the dollar in Australia, New Zealand's largest trading partner.

He defended the euro as a strong currency which was held widely as a foreign exchange reserve.

Mr Daly dismissed any suggestion that Germany, one of the richest nations in the union, was in danger of pulling out and leaving the rest of the countries to sort themselves out.

Nor could he see Greece being cut adrift.

The main reason was the marketplace of 500 million people.

That single market meant goods, services, capital and labour could pass freely.

"This is why there is big belief from all member states and that's why I totally reject the prospect of Germany pulling the pin, as you say."

German Chancellor Angela Merkel had shown the ability to steer each "exacting step" through Parliament and why other countries were prepared to do their bit to keep the union intact, he said.

Those steps were fundamental to the future of the European Union.

A large fund had been established to help out struggling countries and, in conjunction with the International Monetary Fund, there was a determination to not let Europe fail, Mr Daly said.

- dene.mackenzie@odt.co.nz

At a glance
David Dale
Born:
Dublin, Ireland, 1962.
Married with three children
2009 to current: Head of Delegation, Ambassador of the European Commission Delegation, Canberra, Australia.
Previously, head of unit for Croatia, negotiating team for Croatia's entry to the EU and working in other Eastern European countries as they entered the EU.

 

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