Our newly elected President of the European Parliament, Martin Schulz, started his term with a stern message which made many of my colleagues shuffle uncomfortably in their seats: for the first time since it was founded, the failure of the European Union is a realistic possibility. Sadly, President Schulz is absolutely right. 

The start of a new year – and the election of President Schulz– provide a much-needed window of opportunity for European leaders and MEPs to wake up from their political coma and tackle the issues that really matter. 

Our continent’s future is at stake. 

Europe’s reputation – its brand – is crumbling and will soon be beyond repair. This is felt within Europe’s borders, as it is overseas in the United States and Asia. 

The eurozone debt crisis and the double standards of our leaders have turned Europe into a dirty word in American politics. Within Europe’s borders, the EU is no longer a role model for Eastern European countries such as Lithuania. Lithuanians used to look at the EU with admiration and respect. This is increasingly no longer the case. The EU’s moral authority on issues such as human rights and transparency has been dealt a severe blow. 

The outlook for 2012 is therefore bleak. 

According to Ed Lucas, International Editor of The Economist, this trend will accelerate in 2012 as politicians between the Baltic and the Black Sea no longer see why they need outside advice from institutions that fail to practice what they preach. 

So what needs to be done? How can we still prevent 2012 from turning into a catastrophic year for the EU and its member states? 

First, we need to get our house in order and restore public trust. This is a dangerous time for societies across Europe. Growth has stalled and unemployment is rising. But the crisis we are now experiencing is not purely an economic crisis. It is not only about debt, but also about credibility and trust.  As President Schulz said in his acceptance speech, our current crisis is a “crisis of confidence in politics and its institutions that is also undermining faith in the European integration process.”

So if credibility is the problem, then restoring credibility must be part of the answer. It is high time that Lithuania’s leadership and Europe’s leaders repay the deficit of trust to our citizens.

Second, we need to strengthen the foundations of our democracy. This applies particularly to Lithuania, but also to Europe as a whole. 

The recently published Democracy Index published by the Economist Intelligence Unit ranked Lithuania as a “flawed democracy.” According to the report, countries such as Lithuania illustrate “the difference between formal and substantive democracy.” 

This means that while, on paper, Lithuania has equal levels of political freedoms and civil liberties as established members of the European Union, it still lags significantly in political culture and demonstrates weaknesses in democratic development. 

The same can be said about the lack of transparency and endemic corruption in my country. 

Only recently Transparency International described how Lithuanians were heading to the streets armed with envelopes to protest against corrupt back-handers.

Time is running out. Only a truly democratic Union can help us get out of this crisis. 

Third, the EU and its member states must put an end to an era of double standards. 

The 676-page Human Rights Watch ‘World Report 2012’ published in January reminded us of some very uncomfortable truths.  Despite singing praises for the ‘Arab Spring’ democracy activists demanding freedom and justice on the streets of Cairo and Tunis, the EU and member governments proved unwilling to tackle human rights abuse at home during 2011.

Benjamin Ward, deputy Europe and Central Asia director at Human Rights Watch, sums it up neatly: “The sad truth is that European Union governments too often set aside rights at home when they prove inconvenient, especially those of vulnerable minorities, and brush aside criticism of abuse.”

Even more disturbing is that many of the problem areas documented in the report –  declining respect for rights, weak enforcement when violations do occur and the retreat from the idea that rights apply equally to everyone – are not new developments. They have been getting progressively worse over the last few years. 

As Human Rights Watch soberly concludes, unless the EU finds more courage then the downward slide on rights inside the EU looks set to continue.

Unless urgent action is taken, the next generation of Europeans will see human rights as an optional bonus rather than a core value. We cannot let this happen.

Viktor Uspaskich - a Member of the European Parliament, Chairman of the Lithuanian Labour Party.