Barroso: 'Europe is open for business'
by José Manuel Barroso
The EU has been at the forefront of efforts to mitigate and counteract the negative impacts of the crisis. By providing support to member states in need, coupled with commitments to unprecedented fiscal and structural reform, we have been working towards stability and restoring confidence – the bedrock for a return to sustainable growth.
In today's world, sustainable growth has to mean green growth and inclusive growth. Reform is not an end in itself but the key to maintaining our social market economy, our quality of life, and societal cohesion. It depends on 'smart' fiscal consolidation: frontloading measures to stimulate growth and job creation, investing in education, research and innovation, and taking bold action to put public finances on a sound footing for the future.
It will take a combination of national reforms and more coordination and cooperation among EU member states to achieve the turnaround we need. The Europe 2020 policy agenda – our detailed roadmap for smart, sustainable and inclusive growth across Europe – provides a common framework for these efforts.
The European Commission is delivering its end of the bargain, providing an independent analysis of national governments' commitments towards the collective targets to help make our economies fit for the future. On the basis of the commission's proposals, all 27 EU member states now have their own tailored recommendations for action in the coming months. Many are focused on the need to create more opportunities for jobs.
The single market alone has created nearly three million additional jobs in the past two decades. Through the Single Market Act we are helping move the single market up a gear, to adapt it to the challenges and opportunities of tomorrow, to achieve the potential of the world's largest market. In particular we are looking for progress in critical areas like the digital economy and intellectual property, the energy sector, as well as freeing up opportunities for Europe's 23 million small and medium-sized businesses.
Europe is open for business – and this extends beyond our borders. The commission will continue to be a firm advocate for open international trade and we will do everything we can to promote a successful outcome to the Doha Round.
All of these efforts will need to be underpinned by investment. The EU budget we have proposed for the seven years from 2013 is about investing today for growth tomorrow. It is a responsible budget, reflecting the current times of austerity. It focuses on the areas where EU spending provides a real added value over and above national spending, such as cross-border research and energy grids. It is a small but essential part of our overall efforts to ensure that the EU emerges from this crisis stronger and more focused, building a fair and lasting legacy for future generations.
José Manuel Barroso is president of the European Commission. This article first appeared in PublicServiceEurope.com's sister title Public Service Review: European Union
With all due respect to Barroso, this statement isn't any concrete action plan on how the EU administrative bodies propose to come out of the financial morass. This talk of only "trade" and "investment" is frightening after the financial crisis.
As I understand it, these much-touted "financial products" that have a high chance of being overvalued or faulty objects gift-wrapped in IOU's and shares so many times that its very difficult to asses their true value. Consequently they go round and round the mulberry bush, gaining a lot of weight, until it becomes too heavy and then someone unwraps the several wraps and discovers their worthlessness, leading to a severe fall in prices - money just vanishes.
It doesn't take rocket science to get that while these "products" may be profitable for some people initially, they will at some point plummet in value and lead to the ruin of many others.
I am no economist, nor a financial expert, but I do feel that with Europe drawing on its last reserves of natural resources - the age of straight capitalism is over. The time has come to shift to a socialist viewpoint. Tax the rich, don't dive them tax break upon tax break as the "creator of jobs" - most of the time they don't deserve such accolades.
Make space and opportunities for small businesses - the kind that keep people happy and employed, not overworked and prone to be sacked. Aim for an expansion of the middle class - neither extreme is good. Try to educate business owners about the dangers that random firing of people poses to the national economy - less employment, lower incomes, lower taxes, Government is cash-strapped.
Those steps in general should bring the EU out of the crisis, not the same silly talk of "investment" and stuff that led to the crisis in the first place
At least, that's what I think.
Aritra - India
Tremendous benefits obtained in the financial market are taken out of the real market, that of industrial, normal traders - not financial traders, pure speculators that don't produce worth; they only take for themselves the worth produced by others.
A drastic reduction in weekly labour time will increase jobs offer. They will push demand when workers have a job; that means this demand pushe more production, taxes - added value and personal taxes in addition to benefit taxes - R&D, etc. In the right open spiral expanding, eliminating subsidies for the unemployed.
More taxes and less subsidies- without increments of tax rates - means more money for public works, better education, sanitary aids, justice, etc, that produce more offers of well qualified jobs, increasing quality of life.
This is the only right way to go out of this crisis.
To give money and more money to those who lost our money - it falls in their pocket - is like putting money in a bottomless sack.
Alfonso J. Vázquez - Madrid/Spain/CSIC
With the size of the EU budget under scrutiny, our secret columnist imagines how a European Commission official might explain their department's overspending to a committee of MEPs
