ࡱ> DFC bjbj 4  8?S1g}}}}XXXn1p1p1p1p1p1p1$3;6~1XX1}}1}}n1n1r+T,}`]d+Z1101r+6p6,,&66,$X:JFXXX11pXXX16XXXXXXXXX : ties that bind Baron Frankal As Blair and Chirac faded, Angela Merkel quickly emerged as Europes heavyweight even before a buoyant Germany took over the rotating EU Presidency. Looking east as much as west, she is doing a good job of forcefully setting an agenda that eases the EU forward in her trademark small steps. She has made many well-publicised initiatives, including a rather wonkish attempt to increase trade with the US. The compatibility of US and European regulatory regimes is hardly a sexy topic. Yet, a bold initiative to create the structures of a single market is the right issue at the right time. Consider cars: manufacturers need to develop different models for markets with different standards on exhaust emissions, lights, mirrors and windscreen wipers. Agreeing on such things, as Europe itself has proved, has a massive effect on competitiveness. Together the EU and US account for 40% of global production and their trade relationship is the worlds strongest. However, in 1990, US trade with China was 10% of its trade with Europe; today it is 60%. US Treasury Secretary Paulson is currently making an unprecedented third China visit in 9 months. Like its population, Europes economy is rather mature and American flirtation with the virile new South-East Asian kids on the block should come as no surprise, particularly as the EU-US marriage has been rocky for years. This is not just because of Iraq, when even Germany, Europes biggest post-war benefactor of enormous American largesse, broke decades of solid support. The Boeing-Airbus rivalry is now playing out in court and it was EU-US squabbles over farm subsidies that killed the Doha trade talks. US- European competition for Asian markets may have knock-on effects. Merkel wants to remind America what it already has. She wants to retake the economic vows, India, China and others are setting us a new competitive challenge This is why we must join forces Whoever sets the norms today will secure the markets of tomorrow. Unlike previous initiatives to rekindle the romance, this one is blatantly political. This helps, as politicians, foremost the German Chancellor, are committed and want to show success - and quickly. Many normal procedures have been skipped on the way to the focal point of the EU-US Summit in April, where Merkel and Bush want something win-win to talk about. Also, Bush has problems at home with protectionists: his intense wooing of a China that floods US markets by fixing an artificially-low exchange rate is a political open goal. In the uncertainties of an increasingly unfamiliar world, building a new bridge across the Atlantic to solid old Europe may yet have the appeal of a safe harbour. First published as Ties that bind the EU and the US in the Budapest sun on 4 april 2007,  HYPERLINK "http://www.budapestsun.com/cikk.php?id=26151" http://www.budapestsun.com/cikk.php?id=26151     QRTabcfz|D G N Y 9 ; ? E L N   l n d hDhA-CJaJhDhC~CJaJhDhxCJaJhDhDCJaJhDCJaJh*{h 'hD6CJaJh 'hD5CJaJ hxh*{hD5CJaJh*{5CJaJh625CJaJ6bc (,G$7dhx<7$8$H$]7a$gdA-$7dhx<7$8$H$]7a$gdx$7dh<<7$8$H$]7a$gdx$7dh<<7$8$H$]7a$gd*{'kpG_fj 0;_oGHijijĝhuxjhuxUhDh620J6CJaJ jhDh626CJUaJhDh626CJaJh62hDh;KCJaJhDhA-CJaJhDhxCJaJhDhGCJaJ&$7dhx<7$8$H$]7a$gdA-21h:pC. 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