Brussels, 26/06/2012 (Agence Europe) - With the adoption of a five-point action plan, which contains the possibility of a European Stability Mechanism (ESM) for direct loans to banks and the creation, over the longer term, of eurobonds, Europe could double its rate of growth from 1.25 to 2.5%, and thus overcome its current difficulties. This roadmap for the EU, put together by BusinessEurope, which represents European employers, was presented to the press in Brussels on Tuesday 26 June, before being put to the president of the European Commission, José Manuel Durao Barroso, Commissioner Olli Rehn (Economic and Monetary Affairs) and European Council President Herman Van Rompuy that same day.
The strategy put forward by BusinessEurope ahead of the European Council to be held on Thursday 28 and Friday 29 June, mainly aims to restore business confidence, confidence that has been eroded over the past few years, not only with regard to the European institutions but also the soundness of the eurozone and banking systems, said Jürgen Thumann, BusinessEurope President. Without business confidence, all political action aimed at kick-starting the European economy is doomed to failure, he warned. Nowhere more than in Greece has business confidence been illustrated to such an extent. However, the removal of foreign capital from the country, the absence of private sector investment and, as an indirect result, uncontrolled unemployment are not proper to the Greek economy alone. They are also threats that face the whole of the EU, explained Dimitris Daskalopoulos, President of the Confederation of Greek Industries (SEV). For that reason, the next European summit will be “a moment of truth”, as “our business, our jobs, our level of living is in danger”, stressed Laurence Parisot, President of MEDEF (Mouvement des enterprises de France), who went on to add that “we need a political answer” to the crisis, with technical matters being settled later.
The action plan, presented by BusinessEurope, comprises five points. The first point insists on the need to safeguard the euro. This inevitably means strengthening economic governance by enlarging the ESM's scope in order to recapitalise financial institutions, allowing the European Central Bank to be the “last resort lender” and creating eurobonds at an unspecified time in the future. The second point is to improve public finances and speed up structural reforms. Following the examples set by Germany and Ireland, priority should be given to consolidating national budgets, while reforming employment markets (less taxation, more flexible dismissal rules). The third point is to promote private investment, an emergency measure proposed by the business lobby. Although BusinessEurope is in favour of eurobonds or increased capital for the European Investment Bank, it is nonetheless hostile to establishing a financial transactions tax which, it believes, would “reduce the EU's attractiveness”. Unleashing the single market is the slogan for the fourth point. The single market's potential is not fully exploited. To do so, it is necessary to create a true digital single market, a coherent system of patents, and facilitate the mobility of workers within the EU. The last measure consists of extending EU external trade. Above all, it is necessary to launch trade talks with the United States, which would cover the trade in goods and services, investment and the protection of intellectual property. Similar, “ambitious” agreements are also essential with India, Mercosur and Canada. (JK/transl.jl)