Strasbourg, 12/04/2000 (Agence Europe) - After having presented to the European Parliament the "spring economic forecasts" and the plan for main economic policy guidelines (see yesterday's EUROPE, p. 7/8), the European Commissioner for economic and financial affairs Pedro Solbes answered several questions by the MEPs relating to:
- Unemployment and inflation. If we improve the technological skills, we could increase the productivity and know a long period of growth without triggering an increase in inflation, said Mr. Solbes;
- Drachma in the Euro-area. We cannot say anything as long as the procedures are not finished, but if wee look at the data that "are on the table, the prospects are clear and favourable", indicated the Commissioner;
- Policy of differentiating employees wages on a regional basis. It is not "a regional problem, but a problem of productivity," asserted Mr. Solbes, who feels that a certain differentiation" of employees in function of productivity would "economically have meaning." To the journalists who asked about this problem with regard to Italy, the Director General Mr. Ravasio, was on Mr. Solbes's side, reminding that the recommendations of this type where made in the past by the Commission to other countries: we can envisage an adaptation of the level of wages to the level of regional, company or sectoral productivity, he added in saying that it is "an invitation to the social partners." However, The "regionalisation" of wages does not in any way mean possibility of differentiated tax measures according to regions.
- Stabilisation plan in Italy. To a reporter who asked if this plan provided adequate guarantees (notably regarding pensions and the debt), Mr. Solbes answered: yes, but "that is not to say that there are no problems". The budget situation is "quite good, but what will we do with the extra money? Either we reduce the deficit, and the problem of the debt will be easier to resolve, or else we increase spending", he stipulated, stressing that "this is a decision for the Italian government". As for pensions, he noted that it was a "long-term" problem;
- Danger of the Irish economy overheating. The Irish economy is doing well in terms of growth and employment, but is "not so brilliant" regarding inflation.
In addition, answering a journalist who said that the European economy was "the hostage of stock markets" in the United States, Mr. Solbes said: we are hostage to nobody, we are responsible for our policy, and despite recent "volatility" on the American stock market, our situation is quite stable.
