Toespraak Commissievoorzitter Barroso over Europa en haar industrieën (en)

Speech José Barroso

Ladies and gentlemen,

First of all, let me thank you for inviting me to this working lunch. Time is short, so I'll get straight down to business.

In fact, 'getting down to business' is a good description of what the European Union is doing, in the face of the greatest financial and economic crisis since the 1930s.

After no less than three crisis meetings in a row, last week's European Council marked a return to normality, allowing us to focus on the longer term, more structural issues that will shape the future direction of Europe.

I am very satisfied with the result. Much of the work was based on proposals launched in the first few months of this new Commission. The big decisions taken, and the firm support from all European leaders, sent out an important signal that the EU is united in its vision for the future, and has clear ideas on how to get there.

This is about getting the basics of the European economy right for sustainable and inclusive growth. And to do this, we are acting along four lines:

Establishing sound public finances;

Increasing competitiveness;

Building trustworthy financial markets; and

Investing in areas of future growth.

There can be no sustainable growth without first getting European public finances in order as soon as possible.

That is why the Commission proposed, on 12 May, a comprehensive set of actions including ex-ante budgetary surveillance and a refined sanctions regime with better early warning. European leaders gave their full support to this.

The crisis has also shown that in some countries, short-term growth bubbles have hidden a structural lack of competitiveness. Here too, our 12 May proposals - fully supported at the European Council - will make sure we detect bubbles, lack of competitiveness and other sources of imbalances early on.

We all need to raise our game if we want to pull out of this crisis. States, citizens and companies like yours are already making great efforts; it is only fair that financial markets participate in that effort as well.

Commitments were already made by the G20 back in 2008. Now we need to deliver on them. The EU is leading the way with a range of measures to restore trust - from supervisory reform to the new hedge fund and private equity directive, from the bank resolution funds to stricter regulation of credit rating agencies.

The Commission is working hard to ensure that all these proposals are in place by 2011. And I will push our global partners to join us in this commitment at the G20 Summit in Toronto this weekend [26-27/6].

All this activity is vital because growth is only possible if we regain trust. The trust of consumers and investors. Trust between banks and financial organisations. Trust among global partners.

There is no contradiction between greater discipline and growth, as long as we combine the action I have just outlined with structural reforms and this is the right time.

Real growth will come from addressing the roots of a lack of competitiveness. Real growth will come from targeting public spending, in a sound budgetary framework, on those areas that are strategic for future growth. Real growth will come from making better use of our internal market, as set out by former Commissioner Mario Monti in the report I asked him to draft on ways to complete and consolidate the single market.

All these goals lie at the core of our Europe 2020 strategy which, after last week's European Council, is now cemented as the EU's growth strategy for the future; a programme to guide our economy towards new sources of sustainable growth and social cohesion, in order to achieve smart, sustainable and inclusive growth.

Industry is, of course, central to the strategy. How could it not be? Europe's industrial base accounts for 37% of the EU's GDP. It has been severely affected by the current crisis, and we are not out of the woods yet. Labour markets are likely to continue deteriorating, even as the first shoots of recovery start to emerge. And small and medium enterprises continue struggling to get short-term finance.

Then there are the new challenges for industry that have emerged in recent years. Energy security, climate change and resource scarcity will require changes to production methods. Globalisation, and the emergence of China and India in particular, will require an even greater ability to compete. An ageing population will put pressure on supplies of highly-skilled labour.

And not all the challenges are caused by bad news. Industry should be helped to exploit the opportunities provided by our fast-changing world. Consolidating our leadership in eco-innovation, low-carbon and resource-efficient technologies, and other enabling technologies like nanotechnology and photonics. Prising open fast growing markets in Asia, with their rapidly expanding middle classes.

For all these reasons, one of the seven flagship initiatives of our Europe 2020 strategy is a new industrial policy, which will be published in the autumn.

This policy must recognise that old concepts of Member State sectors and industries are becoming increasingly less relevant. It must take more account of the value chain and the integration of markets. It must encourage faster adaptation and adjustment, so European firms can compete internationally. It must take account of tight public finances, and take a forward-looking perspective, to address the challenges of climate change, energy and resource scarcity, and ageing populations.

Ladies and gentlemen,

This is only the briefest update on matters that are important to you - and I didn't mention at all the other flagship policies that concern you - like digital agenda, already adopted by the Commission, an innovation union and the agenda for new skills and jobs, or the new trade strategy we are drawing up.

But today I wanted to emphasise our new industrial policy for the globalisation era. We are in listening mode and reflecting carefully on the details of this new industrial policy. But our objective is clear: to maintain a strong industry and industrial jobs in Europe. This is one of the lessons to draw from the crisis: we can not rely only on one sector to generate growth. We need all sectors. Your feedback is vital because - after all - it is enterprises like yours that generate growth and jobs, not governments or civil servants.

After last week's European Council, our vision is clear. But that vision needs your commitment.

I know we can rely on you.

Thank you.