New Delhi: European Council President Antonio Costa on Monday said India and the EU together can act as “strong providers of stability, security and credibility” on the international stage and safeguard the rules-based order at a time of growing geo-economic turbulence and unpredictability in trade.
In an exclusive interview with Hindustan TimesSoon after attending the Republic Day celebrations with European Commission President Ursula von der Leyen and ahead of the India-EU summit on Tuesday, Costa said growing India-EU security and defense cooperation is important for maintaining security in the Indo-Pacific and ensuring free and open commerce between the Indo-Pacific and the Atlantic.. Edited excerpts:
The EU has described India as an “indispensable” partner. Is India-EU relations ready for the challenges of the contemporary world, and will the summit on Tuesday reflect the respective and shared challenges of both sides?
It is an honor for me and (European Commission) President (Ursula) von der Leyen to receive this invitation to be the chief guest on this memorable Republic Day. Tomorrow, at the 16th India-EU Summit, I think we will work on a trade agreement on security and defense cooperation and mobility.
In our multi-polar world, it is essential that the EU and India become closer and closer partners as together we can become stronger providers of stability, security and credibility in international relations and safeguard our international rules-based order.
I believe our trade agreement is a very important geopolitical stabilizer and shows how it is possible to protect international rules-based trade.
How will an FTA, apart from creating a larger market and opening up access, stabilize things for both sides, especially at a time of rising protectionism and geo-economic unpredictability?
That’s why this trade deal is not just about economics. This is coming at a very important moment and is sending a very important political message to the world that India and the EU believe more in trade agreements than tariffs. We believe trade is vital to boosting our economies, creating jobs and promoting prosperity. This is an important message to the world, right at this time when protectionism is on the rise and some countries have decided to increase tariffs, we are reducing our reciprocal tariffs and we are creating a market of two billion people. It is the largest market in the world and it is very strong for India, for Europe, but also for the world because together we represent a quarter of global GDP. If we increase our trade, we will increase our GDP and we will contribute to increasing global GDP.
Both India and the EU have been the target of unilateral tariffs. Is there a way that both sides can work together to deal with this issue that is causing global market instability?
For the economy, predictability is essential. Any company needs to have a clear view of what they can count on. This is why we need to stabilize things. The European Union is making great efforts to weave a huge web of trade agreements. We have 78 trade agreements around the world. Last week, we signed a trade agreement with Mercosur. I hope that (on Tuesday) we will conclude political negotiations on a trade deal with India. It is the most important trade agreement ever signed by the European Union. It is a very important means of stabilizing trade relations around the world.
Canadian Prime Minister Mark Carney spoke very candidly in Davos about the cracks in the world order and the need for greater multipolarity. Do you see India and the EU as two poles in this new order emerging to protect international norms and the rule of law?
Yes, that is exactly what we are showing. We have put this idea into practice. We are two very important poles in the world. We are working together on trade, we are working together on security and defense because we believe that the international rules-based world must be protected.
We need to respect the UN Charter. We are fully committed to safeguarding multilateralism, which is more necessary than ever in this multipolar world. Like India, we are supporting the agenda put forward by Secretary-General Antony Guterres for reform of the United Nations. This reform is very important (for the system) to be more efficient, but also important to make the UN more representative, especially in the Security Council. That is why we have always supported India’s ambition to be represented in the Security Council.
How will the Security and Defense Partnership fundamentally transform security cooperation between India and the EU?
It has different dimensions. We have cooperation in cyber threats, counter-terrorism, maritime security. At the Republic Day parade, the EU was represented by two maritime missions, Operation Espides in the Red Sea and Operation Atalanta in the Mediterranean Sea. We do not have our own armies, but we have European missions ensured by the member states. We are working closely with India in Operation Aspides and this is very important for security in the Indo-Pacific and to preserve free and open trade between the Indo-Pacific and the Atlantic through the Mediterranean Sea and the Red Sea.
The issue of Greenland and the steady erosion of security alliances that have benefited Europe for decades have prompted a rethinking of security and defence. In your opinion, what is the future of Europe’s partnership with the US and what role do you see India playing in this scenario, especially in defense industry cooperation?
NATO has been vital to Europe, the United States, Canada, Norway and Turkey and, over the past nearly 80 years, has ensured peace from the Mediterranean to the North Atlantic. We need to preserve it. That is why we reached a consensus at the last NATO summit for more equitable burden sharing and enhanced growth in NATO. We believe that in the long term, we will continue to preserve this extremely important defensive alliance that is so important to ensuring peace in the world and stability in trans-Atlantic relations.
(Defence Industry Cooperation) is another dimension of our cooperation in security and defence. This security and defense agreement will allow India to participate in our defense programmes, namely SAFE (Security Action for Europe (SAFE) programme, a €150 billion initiative to provide low-cost, long-term credit for defense procurement) and European defense industrial programmes. This is very important for the Indian economy, but it is also very important for European defense because we are now committed to enhancing our defense capabilities. We are investing heavily in our industry, but also diversifying suppliers. By signing this agreement, we open up the possibility for India to integrate, access and participate in these programmes.
Russia’s war in Ukraine remains an issue where India and the EU are at odds. Some EU members continue to purchase Russian energy, and India has faced criticism for purchasing Russian oil and defense equipment. India’s priority is to buy cheap energy for its people. Can the EU help diversify energy sourcing?
Starting with Europe, we have reduced our purchases from Russia by 74%. Only two countries – because they are landlocked – continue to buy (energy), but we decided to stop importing gas and oil from Russia by the end of next year. We are cooperating more and more with India to increase its energy production capacity. It is very important for India to become more autonomous, and that is why we are working together to increase the use of renewable energy, because this is the only way for each state to become autonomous for its energy. If not, we generally need to import, and when we need to import, we are reducing our autonomy. Renewable energy offers everyone the opportunity to become autonomous and provide affordable energy to citizens and companies.
Would you like India to play some kind of role in helping to end the war in Ukraine quickly?
If India can play a role, I hope so, because this war needs to end as soon as possible. We support all efforts to end this war, including those led by President Trump. But at the moment, Russia is refusing to accept a ceasefire or any conditions for peace negotiations and a peace agreement to achieve a just and lasting peace. I think it is in the interest of all countries to put more pressure on Russia, to put pressure on Russia to negotiate peace and accept the peace agreement. You can never forget that this is not just about Ukraine, this is about respect for the fundamental principles of the UN Charter because the sovereignty of Ukraine is the same as the sovereignty of my country, the sovereignty of Denmark, the sovereignty of Venezuela or the sovereignty of India. When we start allowing a permanent member of the Security Council to use force against a neighbor, we are giving bad ideas to other permanent members of the Security Council. When it comes to the core principles of the UN Charter, we should have no doubts about upholding them, condemning those who violate them, and supporting those who suffer (suffer) from these violations.
As a person of Indian origin, how do you feel about playing a key role in this summit which is expected to yield very important results? Are there any places where you feel the content of the summit fell short of your expectations and how do you see the future of India-EU relations?
I am an optimist by nature and I think it is not just a matter of optimism. The work we did together over the past year gives me confidence in what this Summit will deliver. As a person of Indian origin, I am not only honoured, but also very happy to be here and look back and remember that we re-opened these negotiations in 2020 after the rotational Portuguese presidency of the EU. I am fortunate to be here, I hope to help conclude these negotiations.
