Brussels, 07/09/2009 (Agence Europe) -Marking the start of the new political season in traditional BusinessEurope fashion with the presentation of the Economic Outlook - Autumn 2009, the president of Europe's business leaders' organisation Jürgen R. Thumann said it was a positive thing that “the European economy has started to stabilise somewhat through the summer”. France and Germany had recorded positive growth indicators and the latest estimates suggested that the recession would soon come to an end, he added, warning, however, “though the picture seems rosy, it has to be remembered that recovery is littered with pitfalls. Even if the recession ended today, we would have much to do to overcome its impact for a long time yet”. “Political decision-makers must remain wary, not slacken their efforts but, rather, increase them,” he said. Thumann also backed European Commission President José Manuel Barroso in his quest for a second term of office, writing in a letter to Barroso last week that BusinessEurope was sure that Barroso was currently the only opportunity to present a new vision for a growing Europe. In the letter, Thumann set out the broad thrust of the BusinessEurope programme for the next Commission. The key to success for a strong EU lay in Europe's putting company heads at the centre of the political agenda. A healthy business climate ensures prosperity and helps Europe respond to the current challenges, whether financial, economic, demographic and environmental, Thumann said.
For European decision-makers, BusinessEurope sees six priorities for the immediate future:
(1) putting in place a sound financial system and credit flow: “One thing is clear: over-regulation is not the answer. Smart rules, yes. Such as the cross-border monitoring proposed in the de Larosière report,” Thumann said;
(2) implementing reforms to attract investment and innovation: “We have the ability in Europe to come up with new ideas, but we don't seem able to exploit their full potential on the open market. That's why,” according to Thumann, “we have to improve capital inflow in Europe developing a business-friendly environment, by, for example, applying the principles of the Small Business Act, that's vital”;
(3) developing an exit strategy to excessive public debt: “The current situation is untenable: EU public debt will reach 80% of average GDP in 2010. The Commission will have to help governments to commit to fiscal sustainability. And special attention must be paid to the sustainability of pensions and healthcare systems,” he argued;
(4) boosting employment and human capital: “Human capital is vital and, for that, the business world must undertake to activate the labour market. In this sense, business leaders believe that social dialogue is of the highest importance in these times of crisis,” he said;
(5) supporting commercial freedom and tackling protectionism: “The best way to achieve this is for the Doha Round to be successful. The Commission must develop a consistent economic diplomacy and speak with a single voice on the world stage”;
(6) making global commitments to tackle climate change.
In conclusion, Thumann noted that implementing these recommendations had to be done unde rthe Lisbon Strategy for Growth and Jobs and he stated that BusinessEurope was determined to play a active role in drafting the next stage of Lisbon post-2010.
In presenting the new Economic Outlook - Autumn, 2009, Marc Stocker, Head of the BusinessEurope Economy Unit said that the GDP was expected to fall by 3.9% in the EU27 in 2009 before rising by 0.7% in 2010. For the euro area, there is expected to be a 4/1% fall in 2009 with a 0.5% improvement in 2010. For further information, go to http://www.businesseurope.eu (G.B./transl.rt)