03 March 2014

Commissioner Barnier: Shaping a new, competitive Europe

If we want to put Europe back on the path of sustainable growth, we need to put in place a double competitiveness strategy. First, we need to promote convergence between Member States in the short- and medium-term. And second, we need to take the right decisions to boost our global competitiveness.

I – In the short term, Europe needs to reduce gaps in its internal competitiveness.

• First, we need to step up our economic and fiscal governance. Each year, Member States receive recommendations on how they could become more competitive in the context of the European semester. Since October last year, each euro country has also had to send its draft budget to the Commission for advice, in particular to check its consistency with their national reform programmes.

We need to make good use of these tools. Fiscal consolidation and competitiveness reform should be a consistent mix specific to each country. But perhaps we could go even further and help Member States design sustainable medium-term economic strategies. This would be a valuable addition to the fiscal and financial efforts undertaken. And a completion of our Economic and Monetary Union.

• Second, we need to make better use of other policies, especially cohesion policy.

• Finally, our single market needs to be more effective. With the Single Market Act, we have already done a lot... But there is still a lot of work to be done. Member States need to take some of the responsibility here. To look hard at restrictions and barriers to entry they may have to see if there is a more single–market friendly way to achieve the same public interest goals.

II – In the longer term, we need to be more competitive globally.

I believe we should launch three genuine strategies to drive competitiveness in the longer term.

• First, we need a fresh start for a competitive European industrial sector.

• Second, we need cheaper energy supplies through a common energy policy.

• Third, we need Europe to be a digital continent.

It is election season in Europe. And the populists are at the barricades. Calling for protectionism. Closing of borders. Returning to national currencies. We should pay attention to the questions raised by the voters but let us not be fooled by the sirens of the past: we will achieve nothing by raising barriers and turning Europe into a citadel.

The best reply to populists is to build an efficient and pragmatic Europe. A Europe that concentrates on a handful of priorities while simplifying regulations in other areas. A Europe that does not replace Member States but brings its own specific value added such as the single currency and makes us all more competitive. A democratic Europe, in which each individual, each business and each country has its say on the joint priorities. If we can succeed in building this new Europe, we will succeed in global terms. We will continue to promote our values and protect our interests in an ever more competitive world. And we should aim to build growth on both competitiveness and social cohesion.

Full speech

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