Ambassador Schnabel calls EU next Superpower
by Susan Bailey
published August 24, 2005

Rockwell A. Schnabel sees things many Americans can't.

For the past four years, Schnabel served as ambassador for the U.S. to the European Union headquartered in Brussels. He took office shortly after 9/11 when much changed in the world, and watched the EU create its own currency, the euro, and gather increasing power in a global economy. Born in Holland to a California mother, he has the view of an insider. In his opinion, the EU could overtake the U.S. as the world's Superpower dominating by means of having the biggest economy on the globe.

'Their stated mission: 'To be the most competitive economy in the world,'makes it clear,' said Schnabel in a talk given at the Sun Valley Writers' Conference on Monday morning, August 22. 'If you read that, you'll understand they are aiming right at us.'

The U.S., of course, is currently the only real Superpower. But Schnabel doesn't think that will last. Schnabel noted the EU matches the U.S. gross national product, and has the ambition to outstrip it.

'Europeans save six times more than Americans,' Schnabel said. 'They don't like to spend. If they were stimulated to spend their savings, the economy would have a huge boost.'

Schnabel said Brussels has, in addition to the headquarters of the European Union, the largest press corps in the world and the biggest lobbying force outside of Washington, D.C. The U.S. has officially recognized the European Union since its founding 50 years ago and has sent an ambassador for those 50 years.

But never before has the position been so important to U.S. policy decisions.

'One million California residents have jobs connected to Europe,' said Schnabel. 'Idaho has tens of thousands of jobs linked to the European Union. It comes close to home.'

He thinks the U.S. needs to understand the challenge and also look upon the united governments in Europe as an ally in a time of war. He means now, too.

Although some politicians avoid the term, Schnabel was forthright.

'We are at war,' he said. 'A lot of people don't believe that but that is a fact and that's where we need Europe.'

Schnabel said despite a survey that put 75 percent of Americans in a position of ignorance about the EU, the coming Superpower already has an influence on world security, politics, and the economy.

'It is influencing our lives sitting right in this tent, today, right now,' Schnabel said.

Schnabel said the fact that Britain's Prime Minister Tony Blair has the reins of the EU as its president for the next six months is critical. Schnabel admits Europe has been in crisis, but he sees that as a growth opportunity.

'Tony Blair also sees the crisis as an opportunity,' said Schnabel. 'The U.S. had a crisis 15 years ago, trying to figure out how to enter the global economy. We figured it out and Europe will probably figure out a way to change its social model. Labor law reform is necessary and the new commissioners who took office in November probably have the ability to do this.'

Schnabel said most EU countries' and there are 26 in the group with Romania, Bulgaria and Turkey in the wings' are holding onto older concepts of business including six weeks of vacation, never firing anyone, and keeping everyone working regardless of changing job descriptions and demands.

'In a more competitive environment, you maintain jobs only if they are viable,' said Schnabel. 'Some jobs go, but many new ones come.'

He points to competition from India and China as the threat that will focus Europe on its goals.

Schnabel, a Los Angeles resident with a house in Sun Valley for more than 15 years, recently put his ideas into a book, 'The Next Superpower: The Rise of Europe and its Challenge to the United States.'

He started writing the book after attending the Sun Valley Writers' Conference a few years ago, telling the audience Monday, 'this conference gave me the inspiration to do this.'

Copies of the book were available at the Writers' Conference in advance of national release due to a special arrangement with the publisher, Rowman & Littlefield. Schnabel, who retired as ambassador this year, wrote 'The Next Superpower' with journalist Francis X. Rocca while working hard keeping track of the EU in Brussels.

'This was not easy,' Schnabel said. 'Contrary to what some of you think ambassadors actually do work.'

Schnabel, head of a venture capital business in Los Angeles before being tapped by President George W. Bush for the EU ambassador slot in Brussels, said he believes if the U.S. teams up with Europe, great things can be accomplished.

'We together can fight world poverty and disease,' Schnabel said.

It is a goal he'd not only like to see, but believes is coming soon. If anyone should know, it's Schnabel.

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