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Bolder measures needed to boost the real economy, EESC – European Economic and Social Committee

By Amarendra Bhushan for CEOWORLD Magazine Updated:December 18, 2009

A second and more ambitious European support plan, new rules for international finances and a more political Europe are required to stimulate economic and social recovery. These are the key demands of the opinion on the impact of the financial crisis on the real economy, adopted during the EESC plenary session on 16 December 2009.

“Faced with a crisis like the current one, strong actions must be taken by Europe in order to identify measures and proposals for the short and long term” said rapporteur Carmelo Cedrone (Employees’ Group, Italy) on his opinion “The financial crisis and its impact on the real economy”.

On international finance, the EESC stresses the need to introduce supervision rules and penalties to prevent any recurrence of an uncontrolled system. Eliminating tax havens, banking secrecy and returning to a distinction between retail banks and investment banks would help achieve this.

“We need to radically reform the various policies for which the EU is responsible, finance a system of European networks (energy, transport, communication) by launching a Community loan, and agree a common approach to intervention for European banks. We have to encourage them to restore lines of credit to businesses, with special conditions for SMEs. This could be done by deferring debt, establishing a guarantee fund, or direct funding from the state and the EIB” Cedrone summarises.

The European public should really feel the positive impact of a European pact for growth, competitiveness and employment of this kind. The EU should increase the globalisation fund and create a new programme for young people and the unemployed who want to set up their own businesses. The labour market is currently too fragmented, it needs to become more European. “We need to help facilitate worker participation in the life of businesses to create ‘economic democracy’” emphasized rapporteur.

“It is important to ensure, in the future, that the public does not continue to pay the price of non-Europe” concluded Carmelo Cedrone.

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