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Prince Michael of Liechtenstein, President of the liberal think tank the European Centre of Austrian Economics Foundation (ECAEF), writes in the World Review website about the major challenges facing Europe.

"In an international context Europe is no longer an economic giant and has failed to find a proper way to protect its global interests," he says.

"Unfortunately, instead of following the same path and concentrating on supporting the four freedoms - people, goods, services and capital – with a coordinated foreign policy and a common policy on security and defence, the present crisis is being used to introduce a much stronger centralised control of fiscal, financial and economic matters.

Prince Michael also lays out the major challenges in the European economy, politics, energy and defence. On the UK, he writes: "Britain is positioning itself more and more on the periphery of the European Union.

"UK Prime Minister David Cameron has a double problem. He has to consider the widely divergent internal opinions at home and he faces profound disagreements with continental European partners in a number of aspects. However, we have to bear in mind that most problems are not issues of the union but home-made problems of national states."

This report is published ahead of UK Prime Minister David Cameron’s speech on Europe in The Netherlands on Friday 18th January.

Full report: http://www.worldreview.info/content/europes-major-challenges-politics-economics-and-defence

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