AmCham EU Chair, Zeger Vercouteren (J&J) discusses new role in interview

Zeger Vercouteren (J&J), Chair, AmCham EU discussed his thoughts and visions on his new role in an interview published on Friday, 13 November. He outlined that he foresees his tenure as an 'innovative' one, building 'a constructive business environment allowing our companies to continue growing in and with Europe', emphasising the need to maintain and strengthen the transatlantic relationship.

News
12 Nov 2020
AmCham EU Chair, Zeger Vercouteren (J&J) discusses new role in interview

How does it feel to be the Chair of AmCham EU?

First and foremost, it is a privilege to have been selected - AmCham EU has built up a large membership base and a reputable brand image over many decades, and my company Johnson & Johnson has been there every step of the way. ‘With great power, comes great responsibility,’ as the saying goes – and there is a strong feeling of responsibility in taking up the chairmanship. I will be doing my utmost to further position AmCham EU as a trusted policy partner. I’m excited to get started!

Why did you decide to run for Chair?

As a company we have been a member of AmCham EU since it was established. Like many of AmCham EU members, we have been present in Europe for over 100 years, and we have established a large footprint over our time here. We feel completely part of the fabric of European society. However, we are becoming more and more cognisant of the growing resistance towards global companies, especially of non-European parentage. This is a demonstrable trend that seems to have accelerated in light of COVID-19. However, if you look at all our member companies, and the work they do to engage and integrate in the communities they serve, it is an enormous contribution. AmCham EU members are committed to inclusive and sustainable growth. Now more than ever, we need to build bridges with the EU and return the transatlantic relationship to its height.

My campaign was built on a vision of innovation. Innovation in how we position ourselves with regard to policy-making and society overall. Innovation in making AmCham EU even stronger, sharper and more agile in information-gathering and advocacy. Innovation to keep AmCham EU relevant to its members and providing high added value. Innovation to build a constructive business environment allowing our companies to continue growing in and with Europe.

How would you describe your leadership style?

My style is inclusive and non-conflictual, yet bold and with an appetite for continuous learning and prudent risk-taking. I want to bring people together, build consensus and stay focused on the bigger picture. An ‘honest broker’ approach will be needed, given that the pressure on American companies will be high, and that many policy files are so cross-cutting in nature. This will raise the stakes for a wide spectrum of members. I hope to deploy the trust that I have garnered over a number of years of experience in order to be able to take on the role of ‘honest broker’ with credibility.

I will aim to balance the urgency of business-critical needs for recovery, on one hand, with the expectations of our stakeholders that we play a more meaningful role in generating social value and building economic resilience for the long run, on the other hand.

What do you think will be the biggest challenge for AmCham EU in the coming 24 months?

Firstly, we absolutely need to keep the transatlantic relationship going. If the relationship breaks down and we find ourselves in the midst of a trade war and tit-for-tat tariff hikes, that is ultimately bad for businesses and consumers and citizens alike.

Secondly, we are seeing a trend of turning away from globalism on both sides of the Atlantic. The COVID-19 crisis has underscored the indispensable nature of global supply chains for the international economy. With our global supply chains, we were able to adapt to the crisis as it flared up in different regions of the world, in order to secure supplies to where they were needed. However, when countries moved to restrict imports and exports, that is when the problems arose. Moving towards protectionism to tackle a global challenge is the wrong approach.

Third, the European Commission has brought a number of very ambitious and cross-cutting policy files onto the agenda. We must be able to integrate the very different interests of our individual members, in order to find points of convergence. This will be seen as a strength in the eyes of policymakers, who are constantly balancing the different interests at play.

What are you most looking forward to about the role?

I am really looking forward to working with both the members and the staff. I have always been very impressed with how engaged the members are. The staff are also very dynamic, sharp and results-oriented. This gives me a lot of energy. The scope of AmCham EU’s agenda is very broad – we cover issues across the board. While Johnson & Johnson is active in many of these issues, I am looking forward to tackling issues beyond my company’s wheelhouse and I think I can learn a lot from the experience. I’m also looking forward to working with Susan, who is well-known as AmCham EU’s CEO, and who has led the organisation to where it is today. The board as well is a great mix of backgrounds and personalities.

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This week the European Commission unveiled its Tech Sovereignty Package. While the Package’s energy proposals mark a significant step forward for EU energy resilience, the Cloud and AI Development Act (CADA) proposal overlooks the reality of global technology supply chains and introduces significant legal uncertainty and fragmentation for businesses.

The central question for the Tech Sovereignty Package is how to build resilience without undermining competitiveness. Concerns around overdependence on a limited number of providers, the risk of external disruption to service continuity and the long-term position of the EU’s digital industries are all legitimate. However, greater sovereignty will only be sustainable if it is built on a competitive, diverse and innovative digital ecosystem. The technologies that underpin the global digital economy are developed through highly international supply chains, with innovation spread across multiple markets.

Viewed through this lens, the individual proposals in the Package vary in the extent to which they reinforce resilience while preserving openness and competitiveness. In particular, the proposed CADA risks discriminating against providers that rely on global supply chains – both those based in Europe and those in third countries – even where they offer superior resilience.

‘An origin-based approach is too blunt for such a complex global market’, said Malte Lohan, CEO of the American Chamber of Commerce to the European Union, commenting on the Package.

‘A more credible path to achieving greater resilience and control in such an interconnected landscape is to define sovereignty in terms of outcomes: secure and reliable technologies, customer choice, strong safeguards against undue interference and a business environment that supports investment and growth. That points to a risk-based framework where the EU is open to working with trusted partners. This trust should be assessed on the basis of objective standards rather than origin alone’, Mr Lohan added.

Last year alone, US technology firms operating in Europe and their supply chains supported €1.0 trillion in EU GDP, equivalent to 5.4% of total output. The scale of this contribution underscores the need for the EU to preserve an open environment with legal clarity and proportionality in any restrictions or safeguards that would impact commercial operations.

The Package’s Strategic Roadmap for Digitalisation and AI in energy is a positive step that could help unlock the benefits of digitalisation for Europe’s energy needs, enabling faster and more flexible grids. Digitalisation provides new opportunities to strengthen the reliability and resilience of energy systems. If executed well, the roadmap could support the growing demand of Europe’s digital and AI sectors for low-carbon energy.

Ultimately, the importance of the Tech Sovereignty Package extends well beyond the technology sector itself. Manufacturers, healthcare and life sciences, financial services, mobility, energy and retail all increasingly depend on access to advanced digital technologies to innovate and compete. For the Tech Sovereignty Package to support these sectors, it must ensure companies in Europe continue to benefit from economic openness.

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