THE European Union (EU) has been a significant - if underrated - partner in ASEAN and Singapore, but it is stepping up its commitment to the region, said the EU's ambassador to Singapore yesterday.
Dr Michael Pulch told a Singapore Press Club lunch gathering that the bloc hopes to forge stronger partnerships for trade, security and environmental sustainability, among other areas.
"The EU does not always get credit for what it does, but it does more than meets the eye," Dr Pulch said, noting that the EU is ASEAN's leading trading and investment partner.
"No place in the world has so much FDI (foreign direct investment) flowing out to be invested somewhere else. We are the largest investor in ASEAN, and Singapore receives about 60 cents (90 Singapore cents) out of every euro we invest in this region."
The relationship has continued to grow as the EU has selected Singapore as a hub for EU Gateway, a pilot project that will direct European small and medium-sized enterprises (SMEs) to invest in South-east Asia. The initiative will enable around 1,000 SMEs to arrive here over the next five years.
This initiative is part of a Joint Communication released this week. The document, last updated in 2003, will guide EU regulators on the strategies needed to develop a stronger partnership with ASEAN.
Under the new framework, the EU will also seek to play a greater role in maintaining South China Sea's maritime security, combating human-trafficking and having a policy dialogue with regional governments on sustainable development.
The renewed focus overseas will come at a time when the EU is showing signs of firm economic recovery at home, Dr Pulch noted.
"Next year, the EU's growth rate will align with the US at a rate of plus 2 per cent. Unemployment is now below 10 per cent and dropping, with nearly two million jobs created between December 2013 and December 2014."
The latest challenge for the economic bloc is to resolve the Greek debt crisis, he added, stressing that this is an issue that all stakeholders, including the Greek government and citizens, are keen to sort out despite the short-term brinkmanship.
This article was first published on May 22, 2015.
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