Previous Greek PM lays out approaches to fortify EU

Emphasizing the urgency for European transformation and solidarity amidst various challenges, Aléxis Tsípras, the former prime minister of Greece, spoke to a packed audience at the Minda de Gunzburg Center for European Studies on March 25, coinciding with Greece’s Independence Day.

Tsípras proposed solutions for Europe to address imminent financial and trans-Atlantic disruptions, enhance its unity, and elevate its geopolitical and economic stance. The session was overseen by Peter A. Hall, Harvard’s Krupp Foundation Professor of European Studies and a faculty member at CES, where Tsípras is a Policy Fellow this spring.

“We are witnessing significant transformations globally that influence not only the geopolitical equilibrium and the post-war liberal international framework but democracy itself,” stated Tsípras, who is currently a member of the Hellenic Parliament for the SYRIZA-Progressive Alliance party.

He highlighted that the post-Cold War global framework did not foster equitable growth but rather sparked deregulation in financial markets, leading to the worldwide and European financial crises. He remarked that the West had “underestimated the signals that Russia would act militarily should NATO proceed with an open-door policy regarding Ukraine and Georgia in 2008.” U.S. involvement in the region has impeded the transition to the Indo-Pacific, thereby allowing China to gain influence, “not just in the South China Sea but on a global scale.”

These occurrences have signaled “a transition from a unipolar to a multipolar landscape where the United States remains the most formidable force but has forfeited its supremacy,” Tsípras explained. To combat this, the U.S. is “relinquishing its commitments to Europe and endorsing a mindset that might is right.”

“We are witnessing significant transformations globally that influence not only the geopolitical equilibrium and the post-war liberal international framework but democracy itself.”

Alexis Tsipras

Tsípras urged Europe to bolster its strategic independence while upholding trans-Atlantic discussions, regardless of NATO’s trajectory. “I firmly believe that Europe can and must leverage its common foreign and security policy to serve not only as a deterrent but also as a force for peace and stability, particularly in regions where NATO should refrain from or cannot intervene,” he stated.

Tsípras identified several strategic aims. Among them is an EU — rather than NATO — approach for Ukraine that achieves “peace under the most favorable conditions for Kyiv,” supported by an international peacekeeping contingent, along with a future that allows Ukraine to “advance toward the EU.” He also called for an end to Israel’s bombing in Gaza, as well as a revival of dialogues for a two-state resolution. He emphasized the necessity of a clear communication to Turkey, asserting that the “unacceptable” recent detention of opposition leader and mayor of Istanbul, Ekrem İmamoğlu, must bear consequences. “We cannot persuade anyone, especially in the Global South, of our principles if we demonstrate double standards,” he declared.

Regarding Europe’s economy, Tsípras put forth four policy suggestions. Initially, he referenced Germany’s €900 billion fiscal plan as a substantial departure from Wolfgang Schäuble’s ordoliberal approach, indicating how expediently Europe could have emerged from the economic crisis had this perspective been abandoned 15 years earlier. He proposed “increasing the debt threshold for all member states to about 100 percent.”

His second suggestion advocated for Germany’s new fiscal strategy to be utilized “in a manner that benefits Europe as a collective, rather than merely subsidizing domestic businesses of larger nations.”

His third recommendation was for “the EU to complement its unified monetary policy with a federal fiscal entity — a treasury department, akin to that of the United States, or any other successful monetary union.”

This federal treasury entity could be authorized “to issue common European debt to fund the strategic independence of the EU regarding energy and defense, facilitate the green transition, foster research and innovation, repair Europe’s deteriorating infrastructure, and, critically, enhance our cohesion funds while diminishing inequalities through investments in welfare and education.”

“The EU requires an expansion of its internal market, building on the foundations of the Draghi and Letta Reports,” he concluded.

Tsípras proceeded to discuss the challenges confronting EU unity. He stated that in recent years, several political parties have enabled the emergence of nationalist and extremist far-right factions. “Conservative parties have incorporated the rhetoric and policies of the extreme right to secure their electoral base. Center-left parties are perceived as elitist and disconnected from the middle and working classes. Meanwhile, leftist parties have been overwhelmed by ideology and trivial politics.” He pointed out that the absence of a comprehensive European migration strategy has also fueled the rise of the far-right extremism.

Returning to the debt debate, Tsípras maintained that fiscal unity and rebuilding take precedence over an hypothetical budgetary limit. “If it is essential to finance not just the rearming of Europe but also innovation, growth, and solidarity, then we must take that step,” he asserted.

“Europe must serve as both a deterrent and a peacemaking force,” Tsípras concluded. “The optimal choice is to rely on our strengths. This involves enhancing our internal markets, promoting our cohesion and convergence, and decisively opting for strategic independence, exemplifying a unified foreign policy and defense strategy.”