Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

26 April 2012

Opening speech at the European Business Summit by EC President, Herman Van Rompuy: "Growing Ourselves Out Of The Crisis"


Default: Change to:


President Van Rompuy stressed that moving forward towards a more integrated euro area financial sector framework and fiscal system was key to strengthening the foundations of the common currency, and giving both citizens and investors the certainty needed for the future.


It strikes me that we sometimes face schizophrenic demands, with people telling us one day that a lack of fiscal discipline undermines market confidence, and the next day that fiscal consolidation kills growth!

Let me put it clearly: fiscal consolidation is not an objective in itself, it is a prerequisite for sustainable growth. Structural reforms remain the main lever at our disposal. Their effects are not immediate nor can they be, but they will make a difference over time, and create jobs in due course. We must tell the truth. There are no magic formulas. Reforms take time and so does their impact on growth and jobs. 

Obviously, when speaking about reforms, our focus is always on the road ahead. It may seem steep, but just look how far we have travelled already. This should be a source of encouragement.

Courageous decisions have been taken across Europe. Going against vested interests, of all kinds: in the financial world, in the energy sector, in the labour market, in the sheltered services. Social fairness can only be achieved when the efforts and sacrifices are spread evenly.

Spain and Portugal have made their labour markets more flexible. Greece has opened up 150 closed professions. Finland and many others have shifted tax away from labour. Poland has cut red tape for start-ups and companies. The Baltic States, who were among those hardest hit worldwide, took drastic measures.

Today, growth is back and nowhere in Europe are employment levels rising faster than in Lithuania, Latvia and Estonia! And this with fixed exchange rate systems. I for one have never believed that you could devalue your way out of structural problems! A lot of this work to improve competiveness has to be done by the Member States individually. It helps to learn from each other. All colleagues are now well aware that the failure - or the success - of one country, can change the outlook for all. This gives the discussion among leaders at the European Council a new intensity.  And I consider it my duty, as its first permanent President, to make the most of the continuity provided by my mandate, and remind colleagues -- gently but constantly -- of their individual pledges and collective commitments. 

Our work on stability is unfinished. As we see in the current debt market context, it has become increasingly difficult for governments, firms and banks to access financing outside their own countries. This is very worrying and in the long run an unsustainable situation. It is my conviction that we must keep moving forward towards a more integrated euro area financial sector framework and fiscal system. This is key to strengthen the foundations of our common currency and give both the citizens and investors the certainty they need for the future.

Full speech



© European Council


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment