The Mediterranean, a source of opportunities
The 2008-2009 crisis left as a legacy a strong division in the European Union (EU) between what is called the North and South of the Union. This gave rise to the term PIGS (with a derogatory connotation), an acronym comprising the initials of Portugal, Italy, Greece and Spain, to designate the countries which make up the South of the EU. It alludes to the typical clichés of Southern Europe: informality, unpunctuality, laziness and corruption. It is interesting to note that these same countries are the ones which work more hours per year (EOM, 2018).
These four countries are not only linked by their geographical location and close relationship to the Mediterranean, but also share historical, cultural, social and economic characteristics. Furthermore, their similar economic performance over the past decade, characterised by high unemployment rates, financial bailouts and significant destruction of the productive fabric, induces many to place these countries in the same category. In fact, the PIGS are highly dependent on economic and financial aid from the EU. For example, Andalusia is the region which has received the most funds from the European Union in absolute terms since 1989, followed by the North and Central Portuguese regions, the Italian Campania and Sicily and the Polish Mazovia (EOM, 2020).
Due to the fragility of their macroeconomic structures, the crisis triggered by the COVID-19 has affected these countries more severely. It would therefore be an ideal time for the EU to stimulate economic activity in the Mediterranean, as a post-pandemic recovery plan for the southern countries. There are already several Euro-Mediterranean cooperation projects (EU and MENA countries - an acronym for Middle East and North Africa) called the Euro-Mediterranean Partnership (1995) - stalled since 2000, the Union for the Mediterranean (2007) and 5+5 Dialogue. All these organisations are mainly political in nature.
A determined and persevering economic cooperation would bring great benefits to the countries of Southern Europe by taking advantage of the demographic transition that is taking place on the southern shore of the basin. High fertility in the MENA region combined with gradually decreasing mortality rates results in high levels of population growth in most countries of this region. The Arab population is currently 436.4 million, an impressive figure compared to 128 million in 1970. In terms of opportunities, this means an expanding consumer market that opens up endless possibilities for European companies, both in terms of sales and production - as many of these countries have cheap labour.
In rural areas, population growth has led to an oversupply of labour and pushed many to move to the cities in search of economic opportunities. As a result, the region is experiencing colossal urbanisation, as seen in Algiers, Cairo, Amman and Baghdad. Many governments in the region have expressed concern about the rapid growth of cities, and their lack of planning, infrastructure and service provision. This situation offers great opportunities for European companies, workers and investors. On the other hand, many countries on the southern shore of the Mediterranean are suffering the devastating effects of war, such as Libya or Syria; this will open up opportunities for the European construction sector in the future when these armed conflicts come to an end.
Likewise, regulating and increasing the movement of people around the Mediterranean would help curb illegal immigration and human trafficking, in addition to providing Europe with labour, which is much needed owing to the old continent's ageing population and Europeans' growing rejection of manual labour.
This cooperation could help to close the gap in terms of economic and political development between the north and south coasts of the basin. With job creation and industrialisation, as well as stable and solid development guided by the EU. For example, European countries could contribute knowledge on civil society development, democratisation, digitalisation, peace or sustainability. They could also provide assistance in solving the most pressing problems in the MENA region, such as the status of women in society or radicalisation.
The geopolitical position of the Mediterranean could not be better, as it lies between three continents - Europe, Africa and Asia. However, the economies of the countries surrounding this basin are not exploiting the advantages that this sea offers. This can be well reflected in the fact that the Mediterranean ports are much less influential and smaller than the ports of Northern Europe such as Rotterdam or Antwerp which are much more relevant on a global level. Similarly, most of the transhipment ports are in Europe, with the exception of Tangier in Morocco and Port Said in Egypt, giving a lot of room for investment in port development on the African and Eastern coasts. The customs barriers and EU regulations, the political alliances and the political and social instability of certain countries probably constitute one of the main problems of the maritime development of the Mediterranean.
The EU would have to favour the creation of trade routes, investing in the creation of maritime networks through port infrastructure and efficiency, as well as in the structure and performance of transport before and after the port. All this investment would create a lot of jobs and be a good way to stimulate Mediterranean economies.
1. Los países del Sur de la Unión Europea, El Orden Mundial (30 de diciembre, 2018) https://elordenmundial.com/mapas/los-paises-del-sur-en-la-union-europea
2. ¿Cómo se han repartido los fondos regionales de la Unión Europea?, El Orden Mundial (5 de noviembre, 2020) https://elordenmundial.com/mapas/reparto-fondos-regionales-union-europea