The forthcoming Spring Council must end with stronger commitments on national reform than its predecessors if growth, competitivity and jobs are to be boosted in the EU, says Ernest-Antoine Seillire.
The deep crisis into which the European Union has fallen must be overcome quickly and resolutely. Europe’s economic performance has been dramatically losing ground in recent years in relation to other parts of the world. Amid the badly needed debate on Europe’s future, one fact is uncontested: Europe needs more growth and jobs if it is to maintain its standard of living.
The refocusing of the Lisbon Strategy on growth and jobs at the last Spring Council was an important step towards preparing Europe for the historic challenges of globalisation, technological change and an ageing population. An inter-institutional agreement on the Financial Perspectives 2007-2013 must be found, which should stress the priority to be given to competitiveness-enhancing programmes.
Reform must follow
It must be ensured that concrete reform now follows, especially concerning member states’ national reform programmes (NRPs) and the European Commission’s (EC) community action programme for growth and jobs. The preliminary assessment of the NRPs by UNICE (Union des Industries de la Communauté Européenne) and its member federations is predominantly positive. They provide useful overviews of national reform actions.
However, the NRPs contain almost no new measures, only already implemented or ongoing measures. Most importantly, it will be the implementation of the announced measures on which success of the renewed Lisbon Strategy will depend.
The upcoming Spring Council in March 2006 must end with stronger commitments on national reform than previous councils. The European Council must engage in a real monitoring of the NRPs, including naming best practice and shaming countries whose reform efforts are insufficient. Furthermore, it must reflect a strong commitment and support from member states to the EC’s “Modern (small and medium-sized enterprises) SME Policy”. The EU’s research and development efforts should also be fostered through a reassessment of the seventh framework programme proposal.
The creation of a real services market is another great opportunity to boost growth and jobs in Europe. The services directive currently in the legislative process must add value for the European market and notably for service providers and consumers. It must create new opportunities in terms of employment, economic growth, increased competition, wider choice and dynamism in the services market, which does not yet really exist in Europe. It is estimated that a real internal market for services could create up to 600,000 more jobs.
On the international level, the Hong Kong Ministerial Conference contributed to moving the World Trade Organization (WTO) negotiations forward. However, strong concerns remain over the slow progress in negotiations on industrial tariffs and services. Development is a key objective of the round. However, development will come from progress in the main growth-generating issues – especially market access for goods and services, and improved rules such as trade facilitation.
UNICE urges the EU to develop a new trade strategy to ensure that the EU’s interests in industry and services are at the heart of WTO negotiations. Business does not accept the exclusive focus on the defensive agricultural interest, which represents only 8% of world trade. On industrial tariffs, UNICE demands that the EU pushes for an ambitious Swiss formula to reduce tariffs across the board for all products in Organisation for Economic Co-operation and Development (OECD) and emerging countries.
Exceptions can be made for the least developed countries and for small developing countries but the emerging countries – China, India, Brazil – must cut their applied tariffs significantly.
Lastly, on services, UNICE urges the EU to prepare rapidly, in consultation with the EU services industry, proposals for multilateral negotiations on key services sectors and to pursue the maximum level of ambition and country coverage.
An efficient EU
All this will be possible with a EU that acts efficiently. Most important is to modernise the European institutions and make them work with 25 (and soon more) member states. UNICE has supported the Constitutional Treaty because it is balanced in the values and policies it proposes and because it creates the foundation for the clear, democratic and effective governance the EU badly needs.
Governments should engage in national campaigns on the added value of Europe and its needed reforms for its citizens. The Austrian presidency should work towards putting in place measures to improve the governance of the EU at the June 2006 European Council. Europe has a path to meet its challenges ahead – but we have to follow it.
Ernest-Antoine Seillire is president of UNICE, which represents European business.
