IESE Dean Jordi Canals opened the 2003 Global Alumni Reunion at London’s Queen Elizabeth II Conference Centre on October 18. To an audience of more than 800 alumni and friends of IESE, Canals presented his thoughts on the importance of Europe as a political and cultural force for the future.

The world is currently debating the advantages of multilateralism versus unilateralism for the future and the new world after the attacks of September 11. The effort to build a new Europe on the occasion of European enlargement is an important event. The challenge we face is to build the new house of Europe, not only as a comfortable place for Europeans, but also as a becon of light for the rest of the world. This effort goes beyond the creation of a free trade area or the definition of new roles for European institutions. It is a much deeper initiative that promises to have a transcendental impact on Europeans.

European enlargement is the confirmation of a successful transformation after many years of communism. Only 14 years ago, Europe was divided by walls. This is a clear case for optimism. Who would have thought, after more than 40 years of dictatorship, that most of the former Central and Eastern European countries would march peacefully towards democracy, enjoy more prosperity and eventually join the EU? This process is a fascinating one: sometimes, taking two steps forward and one backward, but always making progress. This is, by all means, an exceptional accomplishment.

Enlargement is the most significant political experiment underway today, not only in terms of creating a free trade area encompassing most of Europe, but also in building a new community of nations with some sharing in collective decision-making and institution building. When so many countries and regions around the world are still looking for ways forward out of poverty and totalitarian regimes, the successful transformation of Central and Eastern European countries offers hope.

EU enlargement is not going to be easy. Many avenues will have to be opened. Many bridges have to be built. Many sacrifices will have to be made by both current members and new members. And yet, the final goal of enlargement is worth the struggle.

Why? First of all, European enlargement will be an opportunity for the redesign of collective decision-making in the EU. It offers the challenge to improve the mechanisms by which the nations of Europe cooperate closely, agree on shared principles and values and orchestrate processes that make the governance of the new Europe more effective. The enlargement offers Europe a chance to work more effectively It can make Europe more prosperous, more open and more stable. In doing so, it will gain credibility in order to have a greater impact in other countries or regions that may need its help.

How can Europe build a better house for Europeans and, at the same time, make the world a better and safer place? Let us not forget that today the world lives in the shadow of the shocking events of September 11, 2001. Today the world seems to be returning to the past ages of the dominance of the nation state. Diplomacy appears to be based on the notion of “raison d’état,” which can also be translated as self-interest, a notion first developed in France in the 17th century. This strategy dominated international relations for almost four centuries, until the creation of the United Nations in 1945. Unfortunately, today international relations are again driven by unilateralism and self-interest.

From Self-interest to Trust

What a sharp contrast with the second half of the 1990s, when we were living in the golden age of multilateralism and economic progress. The differences between rich and poor countries seemed to be narrowing. Globalization was speeding up. It seemed that the myth of progress towards a perfect state of humankind, predicted by Francis Fukuyama in his book “The End of History,” was finally coming to life.

It is true that, in those days, international relations were based on multilateralism, but also on the notion of rationality, a type of rationality that believed that economic progress was unstoppable and that violent and radical actions were on the verge of disappearing. This vision of the world has tumbled down like a house of cards. It looks like the world before 1914, as Stefan Zweig described in his masterpiece “Yesterday’s World.” September 11 and its aftermath have reminded us that the values that we consider to be essential and that we love so much – freedom, human rights – are only protected by a fine and delicate veneer which can be scraped away at any time. What can we do to protect those values? Europe has something to say here.

For centuries, Europe has been a reference point for the rest of the world. When European governments and citizens have stood by their best and most noble values and traditions, Europe has been a becon of hope for other peoples and countries. We all agree that it is not economic, financial or military power that matter today. A country may have them all and still be criticized or feared, or both, by the rest of the world for not using these assets well. More often than not, this is because its strategy may be based on self-interest. And self-interest never generates trust.

And yet, ideas, principles and values that help trust blossom are what matter most today. They are the engines that drive the world. Deep and noble aspirations are the engines that truly motivate and engage people. As Victor Frankl, a survivor of the Auschwitz concentration camp and one of the fathers of modern psychiatry, explained, tyrants and dictators have physical or military force and can take away all your goods and belongings. They can even take away your life. The only things they cannot take away are your ideas, your values, your freedom to face the future with a certain attitude.

In this context, let us remember that Europe has been home to many human, ethical and moral values that we all cherish so much today, not only in Europe, but the world over. There are three main sources of these values. First, Greek philosophers helped define the notion of human nature, individual and public ethics and the first idea of democracy. Second, Roman law and, later on, other European legal traditions established individual rights and duties. Third, Christianity has offered the world the notion of the intrinsic value and dignity of each person, based on God’s image, and the virtue of charity as the dominant principle for interpersonal and social relations, with its many consequences for human rights, solidarity and fairness.

As John Paul II, a great European coming from the East, has emphasized so often, these are values that help place the dignity of human life at the center of social progress. They are solid principles, building blocks that have always been a source of inspiration for leaders who want to build a better society with opportunities for everyone, in which each person can fully develop as a human being. Today, we see many governments around the world, in Africa, America and Asia, trying to build nations based on freedom, democracy and human rights. This experience clearly shows that people of goodwill, from all kinds of national, cultural and religious backgrounds, are looking for the very same values that made Europe great.

Enlargement as an Opportunity

EU enlargement is an opportunity to reflect on these values and to remind the rest of the world what is unique about Europe. This process is also a great opportunity to reflect on the principles that Europe stands for, and its mission in the world. When there is a “why,” an explanation for a collective effort, it is always easy to define how to achieve a certain objective. If there is no moral cause, no deep reason, the effort may be useless. Perhaps this may be one of the reasons why, despite the economic success of European integration over the years, there are so many Europeans who do not believe in this project, who do not understand why this project is being undertaken by a distant group of senior civil servants in the European Commission. Others simply do not feel the project is worthwhile.

We may not agree on the specific distribution of power between the European Council of Ministers and the European Commission, or on the number of commissioners in the new commission. Nevertheless, most Europeans will agree on the central values that one way or another we all share. We should not be concerned about defining a big political vision for Europe. What we need are leaders and institutions that can build – wall by wall, window by window, stone by stone, brick by brick – the new house of Europe, based on the foundations provided by those shared values. It does not matter if it takes a few more years to agree on how to improve cooperation in justice, defense or immigration. What truly matters is what unites us - the aspiration to forge a Europe based on moral values, democracy and the rule of law.

These reflections remind us of the importance of putting principles before action, of putting the mission before the strategy, of placing aspiration before execution in the construction of the new Europe. This is a clear lesson that good business leaders try to apply in their companies and it could also be useful for political leaders.

European enlargement and the integration of 10 new members into the European Union is also a great challenge for firms. The new Europe is already an excellent growth opportunity for all companies, both European and non-European. The new economic region will be an engine for job creation, entrepreneurship and new investment. Companies have to rethink their strategies and operations within this new context. The playing field will be more competitive, but will also offer new opportunities. Let us keep in mind that companies have been a driving force in European integration, thinking broadly, by operating across Europe, investing and creating jobs everywhere. Without companies, the future of Europe would be bleak. With companies helping in this process, the future looks brighter. The corporate world can help, in a very effective way, overcome some of the cumbersome political processes. It can also help influence public opinion about the advantages of a wider, more integrated Europe.