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SPEECH/10/43
José Manuel Durão Barroso
President of the European Commission
Speech at the European Parliament
following the Informal meeting of
Heads of State and Government
European Parliament Plenary
Brussels, 24 February 2010
President, Honourable Members of Parliament,
Let me first of all congratulate President van Rompuy for what was a very good
Informal European Council for the first time under his chairmanship.
After reaching agreement among all of us on the important statement on Greece,
we have discussed the Europe 2020 Strategy. Then I had the opportunity to focus
on the substantial policy issues we are facing, on the challenges, and on the lines
which the Commission will formally propose next Wednesday.
Before the crisis, the European economy was making progress. We saw 18 million
new jobs, a more dynamic business environment. But these gains have been wiped
out. A 4% fall in GDP in a single year, unemployment shooting up to 10%. A huge
hit to our prosperity, and a real threat to our society.
And at the same time, the task is getting tougher. We have an ageing population, a
growing productivity gap with our competitors, and failings in education and
research.
But we have many strengths, too, the world's biggest economy, the fact is that
working together in the single market and the Euro area proved a huge asset in the
crisis.
Europe today faces a choice.
Hoping for a return of the good old days is no option.
One option is limited change, the lowest common denominator which brings some
reform and some growth, but we could never get back what we lost in the crisis.
This option would result in a Europe in the second class of the new global order.
Minimum changes, some form of adaptation.
We can and must be more ambitious. We can aspire to an economic strategy that
puts Europe on the path to competitiveness that can create millions of new jobs.
But this cannot be done by half measures and incremental change.
We need to instil a sense of urgency, a recognition that "business as usual" will not
protect our European way of life, will not defend our social model, on the contrary,
that this will put it at risk.
This requires a joint effort. We need the Member States, we need European
institutions, we need stakeholders and society at large, and we need the active
involvement and support of this Parliament, the European Parliament. For shaping
this strategy, and for communicating it to the people.
Next week the Commission will set out the key elements of the strategy we formally
propose to the European institutions. It will centre on three priorities: smart growth,
inclusive growth, sustainable growth.
First, the core driver of growth must be knowledge. Knowledge and innovation that
produces tomorrow's ideas, tomorrow's skills, and tomorrow's technologies.
Second, to keep in force our European model of society, we need to deliver more
jobs. Our goal must be healthy, prosperous, secure societies where everyone feels
they can play their part. That means giving people jobs and skills, and it means
tackling the scourge of poverty head on. The problem of poverty is not only national,
it requires a European response.
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Finally, our social market economy must be hard-wired to seize the opportunities of
the future. I am talking about sustainable growth, recognising the imperative of
tackling climate change and the pressure on resources. And with this, I mean a
competitive economy, deepening the Internal Market, creating better conditions for
investment especially for SMEs – a European economy able to hold its own in a
globalised marketplace.
These priorities are not unfamiliar. But the fact that we have not yet succeeded in
realising these goals makes them more important, not less. Where we need to
make a radical change is not in our prescription of what the European economy
needs, but in our approach of how to make it happen.
What do we need in order to succeed?
First, the strategy must be comprehensive. We cannot have a "pick and mix"
strategy, allowing everyone to do the easy parts, the real feel good things, and
leave the real challenges to one side. And there are still many, when I think about
the single market, about the quality of our taxation systems, about the way we
spend money at a time of intense pressure on public finances – to name but a few.
Second, our strategy must engage all parts of our societies. We will not succeed in
putting European society on the right track in 2020 if this comes at the cost of social
conflict. That is why a pro-active approach to creating jobs and addressing the
scourge of poverty, are essential.
It is also why we have been right to reform financial markets. We want a strong
financial sector able to finance innovation and help businesses to grow. One which
acknowledges its broader responsibilities to societies and governments which came
to its aid at the time of need. One which accepts that effective supervision at
European level is necessary today.
Third, we must not confuse having an overall vision for the European economy with
the question of who does what. It should not be a debate of competence. We need
a common approach. Still a lot of action will have to come at national level. Others
and not the minor ones will come from the EU. But we will only succeed if we ready
to work together, not besides and not against each other. And therefore we need
credible ownership at all levels. And we need strong and true coordination in the
economic field. The Lisbon Treaty gives us these instruments, and we will use
them.
In this Informal European Council I saw that there was more awareness of the
problem. I can compare with five years ago. I can see much more awareness now
I sincerely hope that this time narrow national interests will not again resist the need
for closer coordination and effective system of European Governance.
Fourth, we need visible, significant EU-level flagship measures to typify what we are
trying to achieve. Projects like an innovation plan, a new skills programme, a proper
industrial policy, a digital agenda, green technologies and a specific plan of action
against poverty.
Projects that have a value and an impact in themselves. And which show that the
EU brings action.
Let me finish by calling upon you, the European Parliament to show your strong
support to these projects – as legislator, as budgetary authority, and as champion of
EU action in every corner of the EU.
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