Norman Logistics GmbH: National Jealousy Weakens the Competitiveness of the EU

Rolands Petersons | 2019.07.10

Rolands Petersons (Latvia), Member of the Board of Norman Logistics GmbH

The new European Parliament and its approved European Commission shall quickly and inevitably return to the politically unpleasant issue. It is the idea publicly advocated by present leaders of France and Germany - to establish “European champions”, the transnational super-enterprises. Yes, possibly, even the EU scale monopolists of their industry.

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Europe needs its industrial giants that could successfully participate in the global competition with the USA or Chinese corporations. To decide on the formation of such "monsters" – for many European politicians or economy theoreticians it might mean to destroy their ideological principles themselves. It does not matter, whether it is confidence in "laisez faire" or in the economy determined by national policy within the framework of one country.

However, the reality is too strict to be ignored. The USA has taken the path of aggressive protectionism, and this mood will just continue increasing alongside with the approach of campaign for the presidential elections in 2020. However, it is almost an obligatory reaction of Washington to the precise and successful global expansion policy of China. Neither the EU, nor even “the free/Western world” sets the laws of global economy. World Trade Organization cannot regulate anything anymore. We must be ready to compete efficiently under the market circumstances, when everything is allowed. Unfortunately, still many European politicians and economists are too stubborn to understand this. Other countries perceive the initiatives of Germany and France with jealousy, viewing them only as danger to their industries.

The situation was brilliantly described by leader of Euro-liberals Guy Verhofstadt, pointing out that in the future there will be empires dominating – China, India, Russia, USA, and warning that “the clock is already ticking” for the ambitions of the EU to remain among the global leaders. We must not trivialize this already paradigmatic assessment – in its turn, to speak about it ironically would be a self-assertive mistake.

Therefore the governments of the Baltic and Central-/Eastern European EU Member States should find sufficient political will and rationalism in order to support consequently the offer of Germany for the new EU strategy in the industry development. After all, this position is based on the rich global competition experience amassed by Germans within the period of at least one hundred and fifty years. The countries, whose business has already cooperated with the economy of Germany, view such position as fully self-evident.

Baiba Savrina (Šavriņa), Professor of the University of Latvia, researcher of global economy, told to the local mass media: the Baltic and Eastern European countries should hardly worry, what cumbersome consequences, for example, their automotive industry would face due to the creation of an export-oriented industry “champion” with the roots in German and French enterprises. For the entrepreneurs of other countries this will mean broader engagement in supply chains, additional orders of components or equipment, as well as the additional demand for their offered goods or services in German market.

The Professor agrees to the statement that other countries may safely rely on the experience and strategic offer of Germany. The motive which could be always clearly heard during the political discussions of this country is the responsibility for the growth of all European economy and welfare. In its turn, France already has lengthy and diverse national scale experience of “the formation of champions” – including the nationalization of enterprises performed by socialist governments during the 1980ies. Therefore in Paris everybody is well aware of both advantages and all shadows and failures of such process, emphasizes Baiba Savrina (Šavriņa).

However, in the Baltic States, such correct measure may become a great venture. Although the government of Latvia has advocated for “softening” of the EU antimonopoly policy by adjusting it to global reality. May be this measure might be even not taken. According to the point of view of our society and politicians, Germany – and its true economic influence on this region –, unfortunately, are considerably mentally disassociated, “directly not perceptible” abstraction, while Nordic countries, especially Sweden, have powerful influence on the Baltics. Scandinavians and Finns, in relation to the future of their industry, may have both national ambitions and sentiments – and among them also jealousy regarding the dominance of Germany and France. Due to their desire to integrate more with the Nordic countries, three Baltic States might choose to support such EU economic strategy, which is based on the yesterday’s arrogance and leads to dead end.

About the company

Norman Logistics GmbH is based in Dortmund, Germany. This company operates in Europe and also in many other major logistics centers in the world. The core business is a cargo brokerage, mainly marine cargo. Norman Logistics customers are significant EU companies which his production transport throughout marine cargo. And service providers are medium or large shipping companies. The mission of Norman Logistics is convenient logistics and one point service for the same price, individual and best quality approach.