Local view for "http://purl.org/linkedpolitics/eu/plenary/2004-02-25-Speech-3-043"
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"Mr President, the Commission has come before the House once again accompanied by the President-in-Office of the Council, as it does every year. We are here to discuss the priorities for economic, social and environmental policy to be dealt with at the Spring Summit.
Private investors are directly affected. They can and must draw on the potential for growth and medium- and long-term benefits resulting from the operation of an integrated economy without barriers.
It is incumbent on the public bodies, including European ones, to complete an appropriate regulatory framework at national and Community level as a matter of urgency. At the same time, the opportunity for a more ambitious political and financial support must be created. Strengthening investment in this way will prove more effective if it is in line with an overall vision such as that generated by the projects included in the growth initiative. Through the latter, the Commission and the European Council are seeking to coordinate efforts to overcome cross-border problems. I refer to problems concerning the development of infrastructures for transport, energy and telecommunications, and also for research, development and innovation.
Fostering the development of knowledge and human capital is crucial to this endeavour. Much remains to be done in this regard. Commissioner Reding is here with me today and will take the floor shortly. She will provide a detailed account of the relevant courses of action agreed within the framework of the Lisbon strategy.
Improving the competitiveness of industry and services is the next priority. Parliament and the Council must focus on the adoption of the legislative package to promote competitiveness. The package contains key proposals such as the recognition of professional qualifications, the Community patent, the most recent directives on financial services and the framework directive on services.
Further strategic reforms concern the review of the guidelines on the TENs and the action plan on environmental technology. It is also necessary to consider how the Lisbon strategy could be improved for the industrial sector.
The third priority is to promote active ageing, allowing older workers to remain active for longer. The elimination of financial incentives for early retirement could be one way of achieving this.
Mr President, if I may, I should like to make two further comments on the report on the Broad Guidelines for the Economic Policies of the Member States and the report on public finances.
The Commission’s recommendation concerning the 2004 update of the current Broad Guidelines on economic policy enabled Parliament to undertake an interesting study. Mrs Randzio-Plath has been largely responsible for the latter. Once again, Mrs Randzio-Plath has cooperated in the analysis of the Lisbon strategy and in developing the policies contained in these Broad Guidelines. She regrets their inadequate implementation and feels that investment is undoubtedly the key issue to focus on in future. The Commission certainly welcomes Parliament’s renewed endorsement of the main axes of the strategy on economic policy contained in the Broad Guidelines. The common broad agenda for structural reform is crucial to increasing Europe’s potential for growth.
The importance of sound and responsible management in macroeconomic policies should not be overlooked. It is essential for strengthening confidence and a precondition for increasing internal demand and employment. In this regard, my views differ from those contained in the draft resolution. I do not subscribe to the opinion that there is an increasing divide between the aims and objectives set at Lisbon and the current Broad Guidelines for economic policy.
I also fail to detect any lack of consistency between the instruments as is stated. The current guidelines cover the period 2003-2005. They focus in particular on the contribution by economic policies to attaining the Lisbon objectives over the next three years. Consequently, the aforementioned guidelines are a vital objective in the implementation of the Lisbon strategy. Their added value is to be found precisely in that they provide an integrated approach to dealing with the various challenges arising. This global approach is developing thanks to the rationalisation of policy coordination. In this regard, progress has been made in bringing the Broad Guidelines for economic policy into line with the employment guidelines. Overall consistency has improved as a result.
Since 2002 it has become established practice for future objectives to be set at the Spring Summit. If we ensure that the summit is effective and successful, we shall in addition be consolidating the emerging economic governance of the Union. I myself am an impassioned advocate of the latter, which is also endorsed by the whole Commission.
I should also like to comment on Mr Bigliardo’s report on public finance within the Union. It represents valuable and useful input. I appreciate the broad support for the Commission’s approach to strengthening the Stability and Growth Pact, and economic governance in particular.
The current framework for coordination of economic policies is based on clear principles, stable prices and monetary conditions, and healthy public finances. As our main objective is to promote growth, we believe this is indeed the most logical and appropriate framework.
Nonetheless, experience has shown that there is room for improvement as regards getting the pact under way or into practice. The Commission is undertaking a review. This will include discussion with other institutions and with the governments of Member States. The Commission intends to make more detailed proposals before the summer. I trust there will be an opportunity for me to discuss these specific points with the House.
The cornerstone of our strategy is the concept that short-term difficulties should not be dealt with in ways resulting in long-term imbalance. Instead, it is essential to tackle such difficulties bearing in mind the current economic situation, possible future challenges, and existing provisions for coordinating budgetary policies. This has helped in improving the budgetary situation and reducing the anticipated level of inflation. At this juncture, the major challenge is how to devote more attention to growth and sustainability of public finances.
My final remark on economic governance is that the objectives set at Lisbon were both ambitious and realistic. Success depended on the determination and commitment of one and all. It now seems that failure to meet the interim objectives will endanger the achievement of what had been agreed for 2010. Our key challenge is to ensure effective economic governance. Steady progress is being made at European level. The right priorities are being set and the appropriate measures and policies identified. When it comes to taking decisions, however, difficulties and delays abound. In addition, Member States have been unable to integrate the aforementioned priorities effectively into their various national policies.
The Commission is trying to do its duty by drawing attention to this programme. I believe it is useful to invite opinions on the best solution to the problem. It is important to seize the opportunities offered by the economic recovery and the momentum for enlargement so as to give the necessary boost to the Lisbon process.
The impetus must come from the European Council. The Irish Presidency has identified this as one of its priorities, hence the opportunity for strengthening coordination of economic policies. The Commission launched its consultation last month for the same reason. The Commission will also prepare proposals for the perspectives for the mid-term review of the Lisbon strategy. It is anticipated that this will be the main issue dealt with in the Spring report next year.
The Irish Presidency has just presented its priorities. It has also confirmed its ambition to make the summit a success, and its determination to do so. The Irish Presidency’s ambition and determination are supported by the analysis and conclusions presented in the Spring report. This analysis was well received in the debate held at the time. It received further support subsequently through the many contributions and initiatives by a good many Member States.
The overview provided in the Spring report is very clear. I shall not dwell on it, though I would like to make a few brief comments on the content. The material adopted on 21 January already contained the main political messages and key conclusions. A series of positive results was mentioned, notably concerning job creation. Six million jobs have been created despite the climate of weak growth. The considerable improvement in the situation regarding long-term unemployment and female employment was also mentioned. In addition, there was reference to opening up competition in strategic web markets, and to the increasing penetration of the Internet into schools, businesses, public administrations and homes.
A recent Commission study confirms that the economic reform process launched in recent years contributed to the additional growth of Europe’s GDP by over half a percentage point between 1996 and 2001. This is certainly a positive sign. It must not, however, lead to playing down the difficulties that have already arisen in connection with the process. These difficulties are particularly striking if they are set against the ambition and objectives defined at Lisbon.
Employment and productivity are not contributing enough to the growth of Europe’s GDP. The internal market remains too fragmented and the transposition of directives still leaves a great deal to be desired.
In essence, the overview confirms the validity of the Lisbon strategy. At the same time, however, it reveals the urgent need to recommit to the latter. Most importantly, it highlights the urgency of making every possible effort to implement the Lisbon strategy.
I shall now identify what the Commission believes the priorities are at this juncture. They can all be found in our report. Greater investment in networks and research is called for. So too is greater investment in development and innovation. It is also important to strengthen the competitiveness of the service industry and to introduce the changes needed to prolong working life. I would like to comment briefly on each of these aspects.
In the light of the slow growth experienced in recent years, it is essential to increase investment in infrastructures and research, development and innovation. In so doing, a more integrating approach involving the European dimension should be adopted."@en1
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