On Jan 1, 2023, Sweden assumed the role of Council of the European Union president.
The council presidency rotates among EU member states every six months, much like Asean where the chairmanship rotates every one year, and Indonesia has just assumed the chair for this year.
Having Sweden as the EU council president of the EU Council coincides with an upswing in the relationship between the EU and Malaysia.
Trade and investments are picking up, people-to-people relations are starting anew as countries have been opening up after the pandemic.
On Dec 14, last year, the EU and Malaysia signed a Partnership and Cooperation Agreement that will serve as a springboard for expanded relations in the years to come.
Sweden has chosen four priorities for the work under its third presidency of the council: security — unity; competitiveness; green and energy transition; and, lastly, democratic values and the rule of law — our foundation.
Every presidency has its share of challenges. Sweden's turn comes in the midst of a global health crisis, and a war raging in Europe which has also led to an energy crisis and a global food crisis.
The EU strongly condemns Russia's unprovoked and unjustified military aggression against Ukraine and the illegal annexation of Ukraine's Donetsk, Luhansk, Zaporizhzhia and Kherson regions. The use of force and coercion to change borders has no place in the 21st century.
Russia's invasion of Ukraine means that the Common Foreign and Security Policy will be high on the EU agenda during the Swedish presidency. It is in the interest of the EU to contribute to counteracting Russia's aggression.
Continued support for Ukraine — political, economic, military, humanitarian and legal — will be crucial, as will various types of measures in response to Russia's aggression and action in a large number of areas affected by the war.
The economic outlook in the EU has also deteriorated following Russia's full-scale invasion of Ukraine.
The Swedish presidency will be operating in an environment of great economic uncertainty, with high inflation, a serious energy crisis and rapidly rising interest rates curbing consumption, production and investment.
Member states' governments are under severe pressure to manage the repercussions for households and businesses. The EU has shown tremendous strength in unity throughout these challenges and Sweden will strive to preserve that.
But, as there are challenges, there are also opportunities. The green transition represents one of, if not the most, defining opportunity in our age. Going green is not only necessary in order to preserve our climate, but also to enhance security and economic growth.
Sweden managed to decouple economic growth from production-based CO2 emissions back in the 1990s and have in the 2010s also done the same with consumption-based CO2 emissions.
More countries are on the same path and it is clear that if you want to be competitive you have to be sustainable. Sweden will emphasise the various legal acts and proposals that underpins continued competitiveness in sustainable industries, ensuring that the EU remains a world leader in the green transition.
The EU comes from a position of strength. Europe is the world's largest exporter of manufactured goods and services and is itself the biggest export market for around 80 countries. The EU is the second largest provider of foreign direct investment in Malaysia.
The EU single market will celebrate its 30-year anniversary in 2023. It is the largest single market in the world with 440 million consumers looking for quality goods.
The Swedish presidency will work to ensure that the EU continues to build open, strong and sustainable trade links with the rest of the world, and that it enters into modern bilateral and regional free trade agreements. In this token, we hope that the EU and Malaysia will agree to resume negotiations on a free trade agreement this year.
The EU's ability to act both in its neighbourhood and globally is also strengthened by an open and sustainable external trade policy and a deepened single market.
Sweden intends to continue the efforts to implement the Global Gateway Strategy, the EU's new fund for global strategic investments, to enhance global connectivity and continue to implement the 2021 EU Strategy for Cooperation in the Indo-Pacific.
The EU's focus will be on security and defence, value chains, climate and sustainability, and trade relations.
There is also a special opportunity for regional cooperation. On Dec 14 last year, the first-ever summit between the leaders of EU and Asean member states was held as well. The EU and Asean are the world's two most advanced regional integration organisations that also share the same values and spirit of cooperation.
Together with the rest of the EU member states in Malaysia and the EU delegation, Sweden looks forward to deepening our institutional ties and broadening the scope of cooperation.
* The writer is Ambassador of Sweden to Malaysia