Lithuanian MEP Paulius Saudargas: 'Undoubtedly, EU loses competitiveness. This is our issue No.1 now'

Paulius Saudargas,  a Lithuanian euro parliamentarian of the European People's Party (EPP, Christian Democrats), member of two EP Committees,  the Committee on Economic and Monetary Affairs (ECON), and the Committee on Industry, Research and Energy (ITRE) and substitutive member of EP Committee on the Internal Market and Consumer Protection (IMCO), still clearly remembers the golden advice of his father, Algirdas Saudargas, who has worked two terms in the European Parliament. “When I was around 20, and was about to join Lithuania’s Homeland Union-Lithuanian Christian Democrats (HU-LCD) and had recently entered Vilnius University to study physics, my dad gave me this advice: “Do not hurry with politics! Mature first!” And now, as a euro parliamentarian, I follow his other simple but wise advice: “Prioritize things!” This is especially important when you are swamped with tons of information,” P. Saudargas told The Baltic Times Magazine.

Are the values of the HU-LCD and the EPP slightly different? What sets EPP apart from the other EP political groups? 

Speaking of the beginning of my term as euro parliamentarian, I see that much of my work relates to the EU’s domestic policies and regulations affecting every member state. This is especially evident with my membership in the two aforementioned committees – the EU member states’ industries generate the bulk of national GDPs. 

The values that the HU-LCD and EPP adhere to are common. Like the Homeland Union-LCD, a center-right political party, encompassing both Christian and more Liberal lawmakers, the EPP comprises a similar variety of euro parliamentarians from all the EU member states. On some issues, like foreign policy, defence, economy, the quest for a strong and competitive Europe, et cetera, both HU-LCD and the EPP are unequivocally identical. Yet, not surprisingly, there are some manifestations of the so-called ‘culture wars’ within the Group, which is quite understandable. The vote on the questions of the kind is left up to the MEPs. So far in the European Parliament, I've never been in a situation where I had to vote against my convictions. 

Recently, warnings on the EU’s receding competitiveness and attraction to investors made headlines. Are they substantiated? What concerns you as a Member of the ECON, ITRE and IMCO committees? 

Undoubtedly and sadly, this is happening. This is Europe’s issue No. 1 today. The topics were raised and discussed when appointing Ursula von der Leyen as the President of the European Commission. Undoubtedly, the issues will be on the agenda of the European Parliament in various formats. Speaking figuratively, just yesterday, the ‘Green Deal’ was trending as the main EU topic, but, today, No1 issue is competitiveness. 

In September, Mario Draghi, author of a report on European competitiveness requested by the President of the European Commission, outlined his blueprint for improving Europe’s competitiveness through closer cooperation in core areas and massive investment in shared objectives. He said that the EU needed to focus on three crucial issues: closing the innovation gap compared with the US and China; developing a joint plan to link the goal of decarbonization with increased competitiveness; and boosting Europe’s security and reducing its dependence on foreign economic powers. 

First of all, energy issues continue emerging as the ones having the biggest impact. With the ties to Russian energy cut, being cut or still retained in some countries and with the introduction of more renewables not going as smoothly as planned, the costs of European production are higher than, say, in the US or China, meaning they have an edge over us in competitiveness. 

Second, unlike the US or China, the industries of the EU as a bloc of independent states are too fragmented and burdened with excessive regulation. 

Third, Europe is aging rapidly, birth rates are record low, and we see big influxes of undocumented low-skill migrants in it. The skill gap is expanding, which, combined with high energy costs, leaves us behind America and China in the field of innovations and, subsequently, the efficiency of the EU economy. 

Do you believe Europe has a proper action plan to address the issues? 

The plan of action is being developed in conjunction with the formation of a new European Commission. When the new EC Commissioners have been appointed, they will be tasked with providing measures. i.e. their plan of action as to how to tackle the subsiding EU competitiveness, as well as to reduce administrative burden, excessive regulating, and boosting the markets, so the EU goes in lockstep and ahead of the other major markers. 

As high energy costs, the result of the ‘Green Deal’, are behind the EU’s lowering competitiveness, is there a sign that the deal can be overviewed and amended? 

When it comes to the deal, the words you mentioned can sound very dramatic to many. Speaking figuratively, the train can not be reversed on the tracks, but the trajectory can be adjusted especially since all agree that climate change does pose many challenges to the European Union and the entire world. But in my opinion, on our own, without the participation of the United States, Asia, Africa and other continents, Europe is unable to solve the problem. Global warming should be addressed globally! We can not do all the homework alone, although we are leading the efforts. Obviously, there is not much enthusiasm to increase the workload of the homework – even on the left. Bluntly speaking, driven by the imminent necessity to go greener and more sustainable, we cannot ruin entire Europe without heeding the intermediary results. 

At the end of the last EP term, there were talks about a more federalized European Union, however, now, it seems that the approach of ‘member states’ interests first’ is emerging. Where are you on this? 

I think the narrative is nowhere near extraordinary. There have always been those who, within the EU, tried to put national interests first. The benefits of the single market far outweigh the other calculations and ideas, as they, again, lead to a lesser competitiveness. Yet the discussions to what extent the member states should delegate, or not, their functions to Brussels, so the countries avoid defragmentation of their markets and benefit the single EU market, come and go. 

EU has adopted many sanction packages against Russia, yet trade, especially in the field of energy, according to some sources, is insignificantly affected. What do you make of it? 

Indeed, far from all want to go by rules. Speaking of the bigger picture, the EU’s green course is certainly in our geopolitical interest to get rid of fossil fuel, most of which comes from Russia and other autocratic countries. Although the EU trade volumes with Russia reduced significantly from the start of the war, Russian gas exports to Europe are still tangible. Objectively speaking, the application of sanctions against autocracies, including Russia, is not as effective as desired. We need to face the reality: the world is open, and businesses find means to evade sanctions. But do not get me wrong: I do support all the sanctions against Russia, as the regime suffers at the end of the day, as it is compelled to sell its resources for a much cheaper price, say, through India. 

Do you believe Ukraine can still win the war? 

Of course, Ukraine must and will win this war. A lot will depend on the new US administration (the interview was conducted before the US presidential election on November 5 –TBT.) Whoever comes to the White House, we all need to do all we can to make sure that Ukraine comes victorious from the war. Despite certain setbacks, Ukraine still demonstrates tenacity and perseverance. Furthermore, incursion in Russia’s Kursk Region gave Ukraine a certain leverage in regaining its territories in the future. Of course, the situation on the front line especially Donbas is very tense. But Ukrainians demonstrate enormous courage and ability to surprise the world. This war has been very unpredictable since the breakout – many were convinced that Ukraine would fall within the first three days, but it still holds ground. Recently, President V. Zelenskiy presented a plan for Ukraine's victory. This is a clear message to the Western world that the Ukrainians have the will to fight and a plan to defeat the enemy, so much now depends on the decisions of the democratic world. Slava Ukraini.