THE STATE OF THE EUROPEAN UNION

THE STATE OF THE EUROPEAN UNION

mandate to negotiate, which had been keep

under wraps. This was a first step forward in

terms of closing a transparency gap that has

loomed over the negotiations from the begin-

ning.

However, no agreement will be possible

without cross-party consensus within the EP. In

principle, the TTIP agreement enjoys the sup-

port of majority groups in the European Parlia-

ment (the center-right European People’s Party,

the Progressive Alliance of Liberals and Demo-

crats for Europe, and the European Conserva-

tives and Reformists), which all regard the deal

as a means of promoting employment and

growth in Europe. However, groups that focus

on highly sensitive environmental or social is-

sues such as the Greens and the United Left

have respectively distanced themselves from the

process or outwardly rejected it.

On this importan aspect of consensus, the

Socialist and Democrats Group of the EP de-

serves much quantitative and qualitative atten-

tion. First, the Socialists enjoy the second posi-

tion in the Eurochamber after the May 2014

elections (191 seats compared to the European

People’s Party (221), the Conservatives and Re-

formists (70), or the Alliance of Liberals and

Democrats (67). Second, here, as on many other

issues, the S&D will have the key to wrapping

up a good deal. The Socialists remain reluctant

to accept many proposed tenets of TTIP and

continue to strongly demand standards protect-

ing the rights of workers and the environment

and the inclusion of binding common regulation

of transatlantic financial transactions, the Social-

ists could assume the role of bridge-builder be-

tween the two sides. Given that a comprehensive

TTIP agreement would need to be ratified by all

28 member states of the European Union, ap-

proaching the Greens and left-leaning MEPs who

currently reject the deal and attempting to build

strong coalitions on this issue would appear to

be a good strategy for easing the path to parla-

mentary ratification, particularly in the light of

the strong gains made by these forces at the

national level during elections in Greece and the

forecasted success of their Spanish counterparts

in the upcoming Spanish general elections.

Recently, the European Socialist Party has

turned its look to other similar Treaties, by point-

ing to the ongoing Canada-EU Comprehensive

Economic Trade Agreement (CETA) as an inspi-

ration for ongoing TTIP negotiations specially

regarding investor protection and ISDS. Major

guidelines for the Socialists include, among oth-

ers, states’ full capacity to regulate; equal treat-

ment of domestic and foreign investors within

the EU; the capacity of states to restructure and

reschedule sovereign debts with no exposure to

investment protection proceedings; and the

creation of a Trade and Investment Court able

to judge on investment protection cases.

Where do we get from here? Making of

TTIP a good deal for Europe

The current differences between the two part-

ners stem largely from the divergent ways in

which political factors are affecting them. First,

the economic and social post-crisis circumstanc-

es that inform their respective positions are

radically different. And second, the differences

of their respective “strategic cultures” make a

big difference in their perceptions, expectations

and attitudes.

The real heart of TTIP might not be, as Trade

Representative Mallstrom has written, “getting

rid of unnecessary red tape”. Unavoidly, the

stakes are much higher. Can we make US and

EU regulation more compatible –

without

lower-

ing health, safety, environment or consumer