Europe and the United States have suffered tremendously as a result of the economic crises over the past few years. High unemployment, sluggish economic growth and in some cases signs of a new recession have created economic and political upheaval on both sides of the Atlantic.

Look no further than the 2010 elections in the US, where the Democratic Party lost control of the House of Representatives, and France, which became the most recent government in Europe to change hands. Despite this turmoil, the transatlantic relationship remains significant and the US and EU remain the fulcrum of the world economy.

Our remarkably stable economic relationship generates $5 trillion
(€4 trillion) in commercial sales and employs 15 million people in both regions. In my home state of California alone, roughly 900,000 jobs are related to commercial ties between California and Europe. Our economies greatly need new jobs and robust economic growth. While the debate in Europe rages between austerity and stimulus, given the sheer magnitude of the US-EU economic relationship, invigorating trade and investment between our two economies should be job number one.

The US and the EU announced late last year the creation of a ‘high-level working group on jobs and growth’ tasked with identifying policies and measures to increase US-EU trade and investment. The success of this initiative depends on three critical components.

First, there must be significant buy-in from the highest levels of government. During the recent G8 Summit at Camp David, US President Barack Obama and the other leaders agreed that “growth and jobs” must be the top priority. Obama and José Manuel Barroso, the European Commission’s president, must follow through on this commitment, ensuring that Europe’s leading states contribute equally. There must be real action – or, as we say in California, there must be meat on the bone.

Second, the private sector must help drive this initiative. Transatlantic and international corporations such as Daimler, AT&T and Facebook can and should work together to help create political will and momentum. These companies know well the negative consequences of tariffs and incompatible regulations and standards. Conversely, they know that eliminating these barriers will create jobs and boost growth. A public-private partnership would, if strong, help ensure that any agreement would not only raise the bottom lines of private corporations, but also have powerful societal benefits.
Third, the transatlantic partnership should play a pioneering role in opening markets where overall global progress has been blocked. In the Doha development round, for instance, there are a number of areas in which Europeans and Americans have essentially agreed to open markets,
but on which there is no agreement because not all the 150-plus participating countries have agreed to them. The US and EU should move forward in these areas, and then offer others the opportunity to join in these market-opening initiatives. In this way we could create economic opportunity without resorting to exclusionary deals. The results would build confidence and momentum for progress in other areas.

Even partial success in opening the transatlantic market would mean economic growth and new jobs. A 2005 study estimated that a comprehensive transatlantic economic initiative would permanently boost gross domestic product per person by up to 3.5% for Europe and the US. That is significant, to say the least – and a strong incentive to act now.

Jim Costa is a Democratic member of the US House of Representatives from Fresno, California. He is also the chairman of the US Steering Committee of the Transatlantic Policy Network.