Brussels, 14/03/2005 (Agence Europe) - On the basis of a number of empirical studies showing that Europe is over twenty years behind the United States in terms of employment, research and development, GDP and productivity, the Association of European Chambers of Commerce and Industry, Eurochambres, on Friday presented an action plan to relaunch the European economy in the context of the revitalisation of the Lisbon Strategy. “I'm terrified! Whilst we are living in the 1970s, the United States are living in 2004”, said Arnaldo Abruzzini, Secretary General of Eurochambres. “The United States has a clear economic lead over us which has been growing since 2000. Current European levels of GDP, investment in research and development, productivity and employment were reached by the US in the late 1970s and early 1980s. Even the most optimistic forecasts show that it will take the EU decades to catch the Americans up. European decision-makers must send out a clear signal in favour of the economy at the Spring Summit”, said Mr Abruzzini.
An economic study carried out for Eurochambres by the Slovenian economist Pavle Sicherl of the University of Ljubljana, entitled EU competitiveness gaps expressed in time, stresses that: 1) the US attained Europe's 2003 employment levels in 1978. The EU will not reach the current American level of employment until 2023, and only then if annual growth in employment in Europe exceeds that of the United States by half a percentage point; 2) Europe's 2003 level of investment in research and development was achieved by the US in 1979. The EU will not hit America's current level of investment in R&D until 2123, but this presupposes that its annual growth of investment in R&D is 0.5% higher than that of the Americans; 3) The US had achieved Europe's 2003 GDP level by 1985. Only in 2072 will Europe achieve current American GDP per head of population levels, as long as European economic growth is half a point higher than American growth every year until then; 4) European 2003 productivity levels were reached by the Americans in 1989. Europe will not reach current American levels of productivity per head of population before 2056, and only then if Europe's annual growth in productivity stays half a point ahead of America's.
“We expect the Summit to support strongly the priorities of growth and jobs. The Summit must show real political dedication to achieving 3% growth per annum in order to create an additional 10 million jobs over the coming 5 years”, said Mr Abruzzini. “The Heads of State and Government should take personal responsibility for delivering on Lisbon and must introduce national action plans to be reviewed annually”, he added. He also highlighted the need to run a concrete communication strategy alongside it. Eurochambres therefore proposes that the political decision-makers at the Spring Summit concentrate on the four following points: 1) in order to preserve the sustainability of the European social and environmental models, the Lisbon Strategy must concentrate on the economy; 2) for growth and employment, there are six priorities: do not adopt any new legislation which may harm business; create a flexible environment which is favourable to business and rewards risk-takers; finalise the internal market; ring-fence money for R&D and education in the financial perspectives of the EU; make the Stability Pact more flexible and move the Doha negotiations forward; 3) the Heads of State and Government must genuinely take responsibility, each Member State must take ownership of the Lisbon Strategy and the prerogatives of the Competitiveness Council must be reinforced; 4) the urgent need for change must be got across to the citizens, administrations and business.