This report sets out a range of recommendations to further deepen the economic relationship between the EU and the US. The report argues that only through joint efforts can Europe and the United States reinvigorate economic growth and job creation, overcome the shortcomings of transatlantic capitalism and Ensure that their economic model prevails in the global economy. The report is the outcome of a project on New Atlantic Capitalism and is based on the discussions of a High-Level Group convened by demosEUROPA - Centre for European Strategy (Warsaw), the German Marshall Fund of the United States (Washington, D.C.), Notre Europe (Paris), Stiftung Wissenschaft und Politik (Berlin) and the European Policy Centre (Brussels), with the EPC represented by Fabian Zuleeg.
Transatlantic capitalism has long been the defining economic relationship in the world economy. Trade and investment between Europe and the United States dwarf all other commercial relationships. The democratic and market-oriented values and practices that gave rise to transatlantic capitalism are the foundation of globalization. Yet Europe and the United States now face profound challenges to their economic model. The recent financial crisis has exposed deep-seated and long-ignored structural economic shortcomings on both sides of the Atlantic. At the same time, the emerging economies of China, India and Brazil pose unprecedented philosophical and practical challenges to both the tenets and the practice of transatlantic capitalism. Only through joint effort can Europe and the United States reinvigorate economic growth and job creation, overcome the shortcomings of transatlantic capitalism and insure that their economic model prevails in the global economy. To that end, this report proposes:
- a binding timetable for the elimination of all tariffs on goods traded across the Atlantic and liberalization of services, investment and procurement markets,
- reduction in non-tariff barriers through regulatory coherence,based on the principle of mutual recognition, with all regulations in play unless specifically exempted,
- an annual strategic economic dialogue involving officials from the US Federal Reserve, the European Central Bank, the US Treasury, finance ministers from European Union member states and relevantofficials from the European institutions,
- resolution of the remaining obstacles to a comprehensive new framework for financial regulation,
- negotiation of common rules for subsidies and the practices ofstate-owned enterprises, rules on inward investment, and government procurement to assure the maintenance of genuine global
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