18 April 2012

Statement by President Barroso at the European Parliament Plenary Debate: "Economic Crisis in the eurozone"

I am therefore grateful for the opportunity to formally present to you today, immediately after the adoption by the Commission, two concrete initiatives which address issues we have discussed at length and where we are in agreement that significant measures need to be taken. First, as part of the effort to tackle the single biggest social challenge which we face, the Commission has today adopted an employment package... [It] puts forward a range of actions at all levels. They include proposals to maximise the job creating effects of EU budget instruments; policy guidance on supporting job creation, especially in areas with great potential such as the green economy, health care and the ICT sector; and they suggest a number of labour market reforms.

While the Communication can take us a long way towards reinforcing the conditions for job creation, implementation on the ground is very much in the hands of the Member States. I would urge the Member States to move forward quickly to take the necessary steps at national level to help foster such conditions.

Greece

The second Communication we have adopted just now is about "Growth for Greece". Again, we are all in agreement on the necessity both to ensure that Greece delivers on its commitments and to support Greece and its people. The great efforts made by the Greek authorities and by Greek people over the last months in undertaking the measures necessary to secure the second programme opened the way for this Communication. The set of priority actions it proposes range from promoting youth employment to tax reform, and investing in education to smarter regulation. These actions, if properly implemented, should quickly unblock growth, create jobs and mitigate the social impact of the crisis. Beyond this, with determination on the side of all the Greeks, and with the full support of the European Union, we can transform Greece for the better: I would like to tell the Greek people that we shall succeed together.

There have been many calls for greater solidarity, for a kind of Marshall Plan for Greece. Let us recall that the assistance provided under the Marshall Plan amounted to around 2.1 per cent of GDP of the recipients. The total package of assistance to Greece, if you consider the funds, grants from the structural fund, the loans, the write-off of private debt, the total package of assistance to Greece is equivalent to 177 per cent of Greek GDP! Yes: almost the double of the growth Greece can generate in one year. This is a very visible symbol of the solidarity which lies at the heart of the Union. This shows we are acting, that we are making an enormous effort to help Greece stand on its own feet and we will continue to do so.

Growth agenda

...It is incomprehensible that Member States are still not fully implementing the growth-friendly legislation we already have in place. Full implementation of the Services Directive will produce immediate results and boost the European economy by 1.5 per cent. The single market infringement rate in Europe is still too high. Again, if Member States are ready to move, this can deliver results fast. The Commission will present a range of ideas for improving Single Market governance and filling the implementation gap ahead of the June European Council.

There is, and it is important to remind it, the international dimension of growth. Our external policies need to focus on access to those markets that are growing faster now in the world. 

In the global economy, the size of your market and the strength of your currency will determine your ability to compete, your capacity to shape the global economy and also your future prosperity. There is no strong economy without a strong currency; there cannot be a strong Europe without a strong euro. It is therefore no surprise that those who oppose a strong Europe also do whatever they can to undermine the euro.

Financial transactions tax

With our proposals for a financial transaction tax to contribute to the budget, we are also making clear that this budget is not only a budget for investment, but also for solidarity. It is also a question of fairness. And fairness is important for the support of the reforms that are needed in Europe.

Press release

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