After living and working in Europe for the last decade, I am amazed at how the continent  functions.  On the one hand, it is a world leader in many ways.  Yet on the other, there is much debate about it’s future.  At the Chatham House in London this week, government and business leaders gathered to take stock of the current status of the European Union and it’s future.  Much has been achieved already.  The European Union is a fascinating collection of 27 democratic states who have integrated their economic, social, and political policies.  Working slowly, and at times quietly, it has become the largest grouping of free trade nations in the world.  When the countries are taken together, it is the largest economy in the world too, even larger than the USA.    The EU is home to nearly a half a billion people.  After experiencing two world wars, European countries made peace with their aggressors, created the largest common market in the world, rolled out a common currency to many nations, and helped transform communist regimes into vibrant democracies.  Today, two thirds of the world’s international development aid is provided by Europe.  These are impressive achievements.  No other region of the world has witnessed such a dramatic shift towards free markets, wealth creation, peace and democracy.

Yet, Europe is on a journey and progress can seem slow or unrecognisable in the moment.  The European Union takes two steps forward, then one step back, two steps forward, one step back, and so on.  There are many issues.  The new Lisbon Treaty has enabled selection of a new EU president and high commissioner to represent foreign interests.  Yet, there is some disappointment in that the individuals selected for these roles are relatively quiet consensus builders rather than dynamic and assertive leaders.   Across Europe, it’s citizens elect representatives to the parliament, yet in the last election countries like the UK have selected mostly euro-sceptic MEPs that have an agenda to limit EU powers.  And, while progress was made on bringing the former communist countries of Central and Eastern Europe into the EU in 2004 and 2007, the discussions on Turkey’s admission seem to have stalled as public opinion wanes.  Two steps forward, then one step back.

Progress in Europe, while slow at times, is indeed progress and in the right direction.  Changing economic and political structures takes time, patience, and much discussion.  Europe will continue to be the world leader in trade for some time.  EU enlargement will continue.  Turkey and Croatia will join in the next years, further enlarging the market, and enabling other countries to join in the future.  The path of progress was outlined for Europe in the Lisbon Strategy of 2000.  The EU seeks to become “the most dynamic and competitive knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion, and respect for the environment by 2010”.  While it is debatable whether the EU will achieve this by next year, progress is indeed happening.  Europeans should take stock of the amazing transformation that has taken place in the last decades and recognise that the momentum is in the right direction.  And for those outside Europe, now is a great time to establish or grow business interests in the region that will continue to lead the world in many ways.