Local view for "http://purl.org/linkedpolitics/eu/plenary/2011-10-25-Speech-2-507-000"
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"en.20111025.29.2-507-000"2
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"Madam President, the so-called Nokia incident is no accident. It tells us two very instructive things.
First, helped by Nokia, we have found out how we Europeans lost our competitive edge. For too long, producers chose to relocate in order to reduce production costs. That was fine from a cost-reduction perspective, but it was not a guarantee of increased quality in a very competitive market. Cheap is not enough. That is what companies like Nokia found in Romania. Nokia closed up shop in Romania because it was severely hit by its own lack of mobility in terms of innovation.
So costs are important, but knowledge and innovation are vital. From this point of view, Nokia only has itself to blame. What about the 2 000 or so Romanians made instantly unemployed by Nokia? Should they blame the smart phones that defeated Nokia? That would not be very smart.
The problem for Romanian workers is that a unified European market allows Nokia to operate successfully or unsuccessfully in Romania, while Romanians face a restricted labour market. In other words, Romanians won the right to be made unemployed by Nokia, only to then be denied a job anywhere else in Europe. That is the second lesson that we can learn from the Nokia fiasco in Romania.
Of course, assistance from the Globalisation Adjustment Fund could alleviate the problem, but only an unrestricted European labour market will solve it."@en1
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