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In a keynote address that underscored how the world has changed since September 11, Guillaume Hannezo, CFO and senior executive vice president of Vivendi Universal, suggested that recent events have created a new collective reality for the United States and Europe.
"Part of being European is living with the memory of war on one's home soil," he told attendees at the Europe Business Conference 2001. "We know how tragic history can be, and we understand the fragility of society." The lesson then, as now, is that the real heroes are not always the CEOs and CFOs of corporations, but the policemen, firemen, and social workers who respond to the call of duty. The business community, he continued, can only help by creating value and paying taxes. "In Europe," he joked, "we are very good at the latter."
A French native who recently relocated to New York, Hannezo recalled John F. Kennedy's famous declaration, "Ich bin ein Berliner." Today, he observed, every European feels a bit like a New Yorker.
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| Countries that deal so intimately with one another can not even think of isolating themselves from the rest of the world. | |
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| — Guillaume Hannezo |
After World War II, Hannezo said, Europe's political leaders were in a race against time. Their goal—to rebuild the region and create institutions that would survive for future generations—would result in an integrated, collaborative entity more resistant to potential future conflict. Their success, he continued, has led to an economic interdependence between neighboring countries that is more pronounced than trading relationships held by the United States.
"In Europe, any loss of confidence in one of our partner countries can trigger a recession," noted Hannezo. "Countries that deal so intimately with one another can not even think of isolating themselves from the rest of the world."
The Euro: loss of diversity?
Given this reality, he added, it makes good sense that eleven European countries relinquished monetary sovereignty to an independent central bank two years ago and adopted the Euro as their common currency. But the European Union's greatest challenge, suggested Hannezo, reaches beyond the establishment of a monetary union to the formation of a single, accountable government.
"In times of crisis, individual leaders of member nations can emerge as real political players and become the voice of Europe," he said, citing Tony Blair's current involvement in the war on terrorism. "But as Henry Kissinger put it so bluntly twenty years ago: 'Europe? Who am I supposed to call on the phone?'"
Many fear, however, that a unified government could result in the loss of social programs and diminish local culture, particularly in a time of increased trade, advancing globalization, and new technologies. "A new Europe, in partnership with the United States, must address these issues to restore confidence and to support diversity," Hannezo said.
In this regard, he continued, businesses have as much of a role to play as politicians. "It is our conviction at Vivendi Universal that it makes good business sense to respect cultural diversity around the world," he continued.
"Our role as a universal company is not just to standardize our products. Vivendi is global in its reach and multicultural in its approach. The synergy that is created between global and local content is one of the most fascinating aspects of the media business today."
With beginnings dating back to 1853, Vivendi has its roots in a water supply company founded by imperial decree; the 1999 purchase of USFilter made it the world's largest water company. Over the past five years, however, during a period that included mergers with pay-TV provider Canal + and Canadian beverage company Seagram (owner of Universal Studios) Vivendi has expanded into the media and communications industry, second in size only to AOL/Time Warner.
Europe's new powerHannezo observed that in the past, Europe lacked a market share large enough to compete with international competitors—particularly the United States—but he sounded a more optimistic note for the future. "The times they are a' changing, as Bob Dylan would say. We have the talent and the market. We're ready to move from a defensive attitude to a position that favors the dynamics of cultural diversity.
"Don't get me wrong," he added. "I don't pretend that Europe has the only model to teach the world." With talent to be found on both sides of the Atlantic and a shared system of values, synergies—such as striking a balance between regulation and markets—will continue to develop between the United States and Europe, emphasized Hannezo. In the process of creating value, each will work together to protect the rights of creators while taking advantage of new digital and interactive technology to create new modes of distribution.
"Together, we will succeed in enhancing the expansion of trade and economic freedom that will favor universal growth and prosperity in a more diverse, open world."
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