Local view for "http://purl.org/linkedpolitics/eu/plenary/2005-05-26-Speech-4-023"

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"Mr President, when it comes to the economic guidelines, which we have discussed today in connection with Mr Goebbels’ report, I wish to say how important it is for us never to underestimate the growing competition we see from the Asian economies, as well as from the American ones. In ten years’ time, we shall have 800 million average income earners in these countries. This will change the economic relationship and make heavy demands upon our ability to exploit this. Sometimes, we also overestimate our own ability to cope with this transformation. I am sometimes struck by the fact that we forget how many people are in actual fact unemployed in Europe and in the various countries, including those in which we report high employment figures. In Sweden, 20–25 per cent of people either are not working or do not have a job to go to, the causes being either absence due to illness, actual unemployment or the large number of people who have taken early retirement. This is a social problem, but it is also an economic one in terms of our ability to bring about prosperity because, as was said in this House earlier, it is not growth that creates jobs. It is jobs and businesses that create growth. We derive hope from the simple fact that we are successful in those countries and those parts of our economies in which we have implemented reforms. Within the telecommunications markets, which we have deregulated, we are most successful in those countries whose economies are most deregulated. In those countries that have reformed their labour markets, we see better development in terms of employment; and in those countries whose taxes make matters easier for business, we see more enterprise. The problem for Europe is not that we have too high interest rates and insufficient stimulation of demand. On the contrary, we have historically low interest rates and, because of these and of high public expenditure, a very heavy burden in terms of providing such stimulation. What we need are reforms. In the guidelines we have agreed upon in the Committee on Economic and Monetary Affairs, we emphasise the need for a more flexible labour market, better conditions for business and concentration upon productivity and competitiveness through more open markets. We shall therefore support this report and see to it that we win support for the proposals we are introducing into it."@en1

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