2015: happy new EU year?

2014 has been a year of warnings for the EU. They came from different corners and in different shapes, but they all carried weight, truth and - yes - encouragements to the EU.

The most profound analysis of the state of the union came on 25 November when, speaking before the European Parliament, Pope Francis looked at the problems affecting the union, its inward-looking approach, its hedonism and its fear of the future, stressing the need to put society and human dignity back at the core of our project.

The EU and its Member States have also been rebuffed in a recent report by the Organisation for Economic Co-operation and Development which showed in detail how widening inequality, and lack of action to correct this, has reduced the potential for growth in the continent, putting an end - if this was not clear enough - to the idea of trickle-down economics and adding to the pressure to reform our agendas for the future.

But possibly the single clearest wake-up call came on 25 May when EU citizens went to the polls (many did not) to elect their representatives to the European Parliament.

Many commentators, especially in the run up to the elections, anticipated and considered the election results as the ultimate coronation of the rise of euroscepticism in Europe. The reality is more complex: although the eurosceptic vote did increase somewhat, there was no tidal wave.

Be it as it may, the elections must however be considered as a last chance mandate to EU moderate parties to achieve reforms.

Abstention and the anti-establishment vote were in most cases not an endorsement of a positive alternative agenda, but rather the reflection of a society whose cohesion is reaching its limits and of a tested middle class.

In recent years fissures have been expanding, rather than retreating. Our society has become more polarised on a number of fronts. People are losing trust in the capacity of politics and public institutions to act. They see the gulf between rich and poor widening. Taxpayers then see individuals and firms dodging taxes at their own expenses. They see corruption and organised crime gripping the soul of politics.

We also see opposition brewing between groups of law-abiding citizens: between young and old, between those who have a safe job and those who live on short term contracts, between migrants, nationals and long-term residents.

On a European scale we witness the opposition between austerity-minded and profligate-minded politicians, between North and South, core and periphery, small and big states.

The soil for centrifugal forces in Europe is fertile everywhere. Eurosceptics, populists and extremists bank on a deteriorating scenario to reap electoral benefits. All that is needed for these forces to succeed is that moderate forces remain immune to the need to undertake reform.

The EU has no magic wand to solve all of Europe's problems, to quickly reignite growth and bridge the divisions that risk tearing it apart. But a new sense of urgency is finally taking hold within the EU institutions and the Member States. The EU can and must play a central role to reverse the deteriorating trust towards EU institutions.

Firstly, it must reinforce the single market by making it fairer. For firms and industries the attractiveness of the EU rests on the offer of a market of potentially more than 500 million consumers. It offers economies of scale, standards and legal certainties. What can no longer be tolerated is that companies exploit the benefit of the single market, but at the same time massively play one Member State against the other in a game of tax competition, culminating in the most notable LuxLeaks case in a form of tax avoidance. That is why for the single market to succeed, the European Commission needs to make the dismantling of tax fraud, tax avoidance, tax evasion and the fight against tax havens a core objective for 2015. The European Commission faces an uphill struggle in an area that is jealously guarded by Member States, but there is now a strong political momentum and it must spare no effort in forcing progress on this matter. The European Parliament will be on its side.

Secondly, the EU needs to break the ideological dispute between austerity minded and profligate-minded politicians, by putting sound investment at the centre of its action. The investment plan announced by Mr Juncker must be supported not only by other EU institutions and private investors. It must also include key support, including financial, from the Member States.

Thirdly, the EU must not shy away from its responsibility in facing global challenges.

Part of the mistrust of citizens comes from the perception that they are subjects rather than actors of globalisation. The EU must prove them wrong: whether we look at the transatlantic trade negotiations or the situation in our Southern and Eastern neighbourhood, the EU must show greater firmness, fairness and engagement.

2015 must be a year of renewed trust in the EU institutions. For this to happen, the EU needs to act with a new sense of urgency and priority. 2015 will not be an easy year but it must be one of renewed hope towards the future.

I wish you all a happy 2015.