For five post-war decades, the free part of the European continent experienced extraordinary prosperity. In the early 1990s, it was the world’s leading market in terms of exports and consumption. Today, other global powers are overtaking us, and the project of a united Europe is under serious question — said Andreas Treichl, renowned economist and Chairman of the ERSTE Foundation, during a meeting with participants of the 15th European Financial Congress, organized by PKO Bank Polski.
Andreas Treichl is a legendary figure in the world of finance and banking. In 1994, the Austrian economist became a member of the management board of Erste Österreichische Spar-Casse, and three years later, he was appointed CEO. Under his leadership and initiative, the bank — previously a local savings institution — was transformed into a leading provider of financial services in Central and Eastern Europe, serving over 16.7 million clients. Treichl served as CEO of Erste Group Bank AG for 23 years, and in 2020, he became Chairman of the Supervisory Board of the ERSTE Foundation, which promotes European cohesion and democratic values.
In a conversation with Maciej Kuziemski, President of the PKO Bank Polski Foundation, during the 15th EKF in Sopot, Treichl expressed his concerns about the current state of the European Union.
“From a global leader in exports, consumption, and innovation, we have fallen far behind. Each European country on its own would struggle to economically compete even with Vietnam — not to mention China or the U.S. Today’s weakness of the European Union stems from the poor condition of its key member states and a lack of cooperation between the most important capitals,” the expert diagnosed.
Treichl recalled that in the past, it was the member states that drove EU institutions to act — today, however, we are witnessing stagnation and a kind of decision-making paralysis.
“Integration has stalled, and about half of Europeans are now questioning its logic and necessity. The last major joint project was the creation of Airbus. Since then, politicians and bureaucrats have shied away from ambitious challenges. In 2008, the then-President of the European Commission promised that the EU would become a champion of digital transformation — and now, more than a decade later, we are reading Mario Draghi’s report warning that Europe is on the verge of becoming an economic and innovation backwater,” said the economist.
Asked by the PKO BP Foundation president about necessary reforms, Treichl stressed the need to “rewrite the EU from scratch” — in a way that makes it understandable to every EU citizen. One of the slogans, in his view, could be the creation of a European capital market that allows young people and the broad middle class to grow their wealth.
“A few decades ago, an average firefighter or police officer could afford to build their own house after a few years of work. Today, millions of young Europeans enter adulthood either still living with their parents or paying exorbitant amounts in rent. The EU’s leaders should send a clear signal that they understand their problems and frustrations — and that they are creative and brave enough to offer real support,” he said.
Treichl also emphasized that Poland must play an active role in the EU’s fundamental reform.
“All of Europe is watching with admiration the growing potential and importance of your country. Today, no significant EU decision is made without Poland. On the other hand, this requires the entire Polish political class to take great responsibility for the fate of the continent. Either we manage to revive the EU — or we will have to accept its end,” he stressed.
Source: PAP MediaRoom
