CIDOB notes Internacionales 271 highlights the evolving dynamics of cooperation among Southern European member states within the European Union (EU). The report underscores the historical and political reasons behind the lack of strengthened collaboration among these states, which are characterized by significant differences in size, economic power, and foreign policy interests. Despite these challenges, Southern Europe's members share converging interests in fiscal policy, economic governance, strategic autonomy in energy and technology, and foreign policy priorities, particularly concerning the Mediterranean region and relationships with other global powers.
The report draws attention to the diverse and complex nature of Southern Europe's political landscape, where countries like France, Italy, Spain, Portugal, and Greece often compete rather than cooperate, with France often seen as a leader due to its equal weight to Germany in the EU. The Mediterranean region has served as a platform for these countries to vie for credit and enhance their reputations through foreign policies. The report cites historical instances, such as the Libyan crisis of 2011 and Greece's initial distrust of Portugal and Spain's accession to the European Economic Community, as evidence of this competitive dynamic.
In more recent times, Southern Europe faced a "North-South divide" during the 2008 financial crisis, leading to labels such as "PIGS" for Greece, Portugal, Italy, and Spain. Northern European countries criticized these nations for living beyond their means and imposed austerity measures. The crisis exacerbated economic antagonisms within the Southern bloc, leading to increased risk premiums, public debt-to-GDP ratios, and banking system crises. The report notes that this period saw Southern European states fail to establish a common front or solidarity among themselves, often attempting to distance themselves from each other's economic challenges.
However, the COVID-19 pandemic presented an opportunity for renewed cooperation. Italy and Spain initially collaborated to develop innovative solutions for a common EU response, leading to the Franco-German proposal for the Next Generation EU (NGEU) investment package, funded through a common borrowing scheme. This event marked a shift in the approach of the European South, aligning with the EU mainstream and guiding Europe's response to the pandemic-induced economic crisis.
The report suggests that when cooperation leads to the convergence of interests, positive outcomes for Southern Europe as a whole can follow. It cites recent examples of competence and leadership demonstrated by countries such as Portugal and Spain, which were the first to submit their recovery plans and receive disbursements from NGEU. Greece's handling of the pandemic in 2020 and the speed of digitalizing public and health services received praise, while Italy's appointment of Mario Draghi as prime minister bolstered its credibility and influence.
In summary, while Southern European states have historically struggled with cooperation due to varying interests and sizes, recent events indicate potential for stronger collaboration when aligned with shared goals and interests. The pandemic and subsequent NGEU initiative serve as case studies highlighting the benefits of collective action for the region.