Boyd Farrow reports on the latest developments in Brussels  By European Commission standards, it was a dynamic slogan. Under the banner “Reform to Perform”, EC president José Manuel Barroso used his opening speech at the fifth European Business Summit, held in March, to proclaim that the EU was in a strong position to capitalise from the measures bundled together under the Lisbon Strategy for Growth and Jobs. He pointed out that in the period 2006–08, seven million jobs will be created, while unemployment is at a 10-year low. Growth, he noted, is 2.9%, the highest since 2000. Europe is buoyant in terms of productivity, skills and investment.
The former Portuguese premier stated that as the EU’s economy operates in the global marketplace, Europe cannot just focus on internal issues. He also asserted that deepening EU economic ties with its main trading partners is crucial. Barroso said he was working with Chancellor Merkel in trying to bolster a transatlantic economy at the next EU-US Summit. He noted that total US investment in China in 2006 was just one quarter of total US investment in Belgium the previous year. “We must give a strong impetus to regulatory and standards convergence with the US,” he said. “This will also help both sides of the Atlantic to better shape globalisation. The march of technology and worldwide competition leave us no alternative: our labour markets must be ready to respond appropriately to change.” At the same time, the EC is continuing to drive the Lisbon Strategy forward. Barroso insisted the EU is committed to unlocking business potential, particularly that of SMEs. “By setting a target of a 25% reduction in the administrative burden by 2012, we will substantially improve the entrepreneurial environment,” he explained. Other proposals meant to gee up delegates included a coherent framework for intellectual property protection and the creation of the European Institute of Technology. Inevitably, Barroso also proclaimed his intention “to safeguard our energy security while fighting the vital battle against climate change”. It was disheartening that more than a quarter of Europe’s leading companies do not believe that the EU has had a positive impact on their performance, according to a survey presented at the summit. Out of 430 top executives, 28% felt the EU had not benefited their business, while 23% believed it had had a very positive impact. Of 11 EU member states, companies in the UK and Italy were the most sceptical: negative responses accounting for 37% and 44% respectively. According to the report’s authors, Roland Berger Strategy Consultants, the underlying message is that the EU must deliver more for the private sector. The top priority among CEOs is market liberalisation, with some 91% demanding fewer regulations. The second most popular request is the development of transport infrastructure, followed by the need for the EU to simplify standards and cut red tape. Another key message is that the EU should develop as a major player in the alternative energy and environment sectors. Seventy percent believe it should promote new energies. This won’t have come as a huge shock to Arcelor Mittal, the world’s largest steel maker, which told summit delegates that it wants to see sector-specific emissions trading plans. Board member Michael Wurth said such a scheme would encourage the development of new technologies and production methods. Ironically though, according to another survey released shortly after the summit by business coaching outfit Shirlaws, SMEs do not see environmental issues as a key challenge to their business. Respondents placed “reducing environmental impact” last in a list of 18 choices of the greatest challenges facing their businesses in the next five years. |