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Europe Daily Bulletin No. 9154
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GENERAL NEWS / (eu) eu/eesc/spring summit

Jose Manuel Barroso says EU cannot compete with China and India if it has 25 mini-markets for energy, services, etc.

Brussels, 17/03/2006 (Agence Europe) - Addressing the plenary assembly of the European Economic and Social Committee (EESC) on 16 March, the President of the European Commission, Jose Manuel Barroso, welcomed the renewal of the new cooperation agreement between the two institutions, making their relations more political. He said the EESC would now be able to intervene earlier and earlier in the decision-preparing process, at a stage where the EESC opinions can have an impact on the political direction of legislation. To boost mutual information, constructive dialogue and democratic debate between the two institutions, Jose Manuel Barroso said the EU Commissioners had launched direct links with the EESC, and Commissioner Lazslo Kovacs had give excellent feedback from the 9 and 10 March conference in Budapest (see EUROPE 9150) he had attended.

After outlining some the issues to be discussed at the European Summit next week, Barroso said that by adopting the revised Lisbon Strategy, the Commission had totally rethought its approach to economic policy in the EU, and for the very first time in history, all 25 countries had agreed 'together' to implement reforms that the European institutions would be following up.

Responding to various concerns raised by members of the EESC, Jose Manuel Barroso said that in general, the European Commission would be applying competition and internal rules with determination because EU legislation had to be respected. He said the Commission is an independent body and it is sometimes part of its responsibility to take decisions that the Member States don't like.

He then answered questions on 1) economic patriotism (from Giacomo Regaldo, President of the Employers' Group, Italy; Mario Sepi, President of the Workers' Group, Italy; and Stéphane Buffetaut, Employers' Group, France), saying that patriotism was a wonderful idea but was not productive when applied to the economy. The EU cannot compete with India and China if it has 25 mini energy markets, services markets, etc. Barroso said one should take advantage of the internal market and the Commission would be taking a rigorous stand, applying EU legislation to defend the internal market and its four freedoms. (2) The Services Directive (Rodrigues Garcia-Caro, Employers' Group, Spain). The Commission backs the compromise deal reached by the EP as a 'good compromise'. Barroso told his 'friends and partners' in the new Member States to compare the EP's compromise with the current situation rather than with some sort of ideal directive that they would never get, because the EU is compromise and give and take. The EP's compromise will be the basis of an amended draft to be unveiled by the Commission in April. Healthcare has been excluded from the directive but Barroso said the Commission believed it deserved a special report. (3) Social policy (Mario Sepi). Barroso said social issues were for Member States to decide and anything that the EU could do would only be complementary and subsidiary to national decisions. The Commission does not replace the Member States and social responsibility has to remain with Member States because that's the level closest to citizens, he argued. (4) European Communications (Rodrigues Garcia-Caro, Employers' Group, Spain; Ribbe Lutz, Diverse Activities' Group, Germany). Barroso said that even with the best marketing system in the world, it would not be possible to communicate ideas on the EU without European and national politicians, regional leaders, social partners and the members of the EESC. He added that his message was a message of responsibility. (5) Energy (Gintaras Morkis, Employers' Group, Lithuania). Barros said that energy issues were strategic questions of EU interest and it had to be explained to ordinary people that the EU could not be divided into 25 energy markets. This is a political and cultural battle in the widest sense, he said, and it was important to move beyond the parish pump mindset. With globalisation, added Barroso, an EU strategy was required that went beyond national strategies.

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