Local view for "http://purl.org/linkedpolitics/eu/plenary/2003-05-15-Speech-4-015"

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"Mr President, I fully agree with the previous speaker, Mr Della Vedova, that the greatest challenge to economic sustainability is the growth in Europe’s ageing population, which is a problem we must tackle while its economic impact is still controllable. The is not really an option for European governments. In order to prepare for the overall as well as the budgetary effects of ageing populations we have to increase employment, reduce public debt and reform pensions and health care systems. The additional costs that would result from postponing the pension system reforms will in the future be taken out of the pockets of today’s youth. Change, even change that is necessary and inevitable, always meets with resistance, which is what we have also experienced this week in Strasbourg. This resistance to change, however, cannot be allowed to become a pretext for delaying necessary reforms or a barrier to them. Europe’s economic situation is worrying and our economic growth is clearly poorer than what was forecast. Avoidance of geopolitical risks now gives us some hope of faster economic growth, but numerous experts are also pointing out that in forecasts made in the last two years faster economic growth has always been put off until the following six-month period. Our poor economic growth is largely home-made: ‘made in Europe’ Ladies and gentlemen, sluggish growth, falling productivity, a decrease in external demand, a decline in business and consumer confidence, and the continued rise in unemployment are facts of life this year. The only positive factor is the low rate of inflation, which has averaged around 2% and will possibly fall even further. At their summit meetings the heads of our Member States have promised to implement structural reforms allowing growth and stability. The extent to which this has been done in practical terms, however, has been inadequate, and poor economic growth and mass unemployment are the price we pay for putting off these reforms. If we want the broad guidelines of economic policies to have a successful outcome they should incorporate a clear work programme which defines the main areas of action for reform and a timetable for completion. In addition, the guidelines should list the special actions which are needed in those areas where internal political ‘stalemate ’ has obstructed progress in certain Member States. The EU is still characterised by its under-utilisation of human resources. Our employment rate, which is low when viewed in the international context, is also due to the misconceived incentives embedded in our benefit systems, which are conducive to withdrawal from the labour market or remaining outside it. Tax and benefit systems should be reformed, for example, by reducing excessively high rates of tax for those on low incomes. Tax reductions, however, should be made for everyone in paid employment. More flexible arrangements for working time and less stringent regulatory systems would enhance participation in the labour market and improve employment opportunities."@en1

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