Brussels, 13/10/2003 (Agence Europe) - In its "Economic Outlook- Autumn 2003", which it published in Brussels on 13 October, UNICE (European employers) stated that the rate of growth in 2004 may be 1.7% in the euro zone and 1.8% in the EU of Fifteen. The business world has welcomed the EU's initiative for growth, to be discussed at the European Union in Brussels on 16 and 17 October, but notes that it will only be of use in the longer term.
Presenting the report to the press, UNICE Secretary General Philippe de Buck reaffirmed his words to the EESC conference on the Lisbon strategy (see next page), which were that "Heads of State and Government must renew the political commitments they took at the Lisbon Summit of March 2000, and attack the inflexibility of the markets and structural imbalance". Philippe de Buck feels that "the Summit should explain that the Lisbon strategy is an initiative for growth, not just an abstract concept". He stressed that "competitiveness is key. The Lisbon strategy must be put into practice. Greater competitiveness in European business is vital to free Europe's enormous potential. The growth initiative concerns infrastructure, which will have long-term effects". Me du Buck took the opportunity to reiterate the Lisbon strategy's five priority action areas, which are entrepreneurship, innovation, employment, the internal market and sustainable development.
Mr de Buck also announced that UNICE is to hold the European Day of Competitiveness on 14 November, with the support of the Italian Presidency, with many European political leaders and representatives from industry and the civil society taking part.
With this Economic Outlook for October, Philippe de Buck commented: "UNICE has some good news for you: we are making progress". The employers' studies do indeed show some encouraging signs of recovery, but these must be complemented by measures to monitor European competitiveness, highlights a press release. This improvement in the business world was confirmed by Jean-Paul Betbèze, the Chief Economist of Crédit Lyonnais and chairman of UNICE's Economic and Financial Committee. However, this improvement is not enough, Mr Betbèze told the press, "because growth rates in Europe are still 2% lower than in the USA. Policy-makers must implement necessary reforms much more quickly, as European recovery is much too slow".
The employers' association's report: 1) underlines the fact that "Europe has not caught up with its main competitors, such as the United States" because it has not tackled its real problems: unemployment, inertia of reforms, budgetary uncertainties; 2) supports the European Central Bank's policy; 3) calls upon Member States to show greater budgetary discipline. Any erosion of the Stability and Growth Pact could weaken confidence and hold back growth: its rules should be applied, warns UNICE.
The Economic Outlook is based on the results of a study of the EU's economic situation, carried out by the member federations of the European employers' association. It is published twice a year, in the spring and in the autumn.