Rehn: It’s all about reforming the European social and economic model
On 11 January, European Commissioner for Economic and Monetary Affairds Oli Rehn said that “even if there is less reason for pessimism at the start of 2013, we cannot afford to lower our guard…It is all about reforming the European social and economic model.”
During his speech at the European Policy Centre, Rehn urged Member States to capitalise on the improved sentiment at the start of 2013 and pursue with “consistent determination” the necessary reforms on rebalancing their national economies.
However, the Commissioner emphasised that the coming months will still be difficult because the European economy remains weak and Europe is expected to return to robust growth as it moves into 2014. Growth will be achieved according to Rehn by (i) enhancing competitiveness; (ii) reducing trade and labour-cost imbalances; (iii) boosting investment and entrepreneurship (iv) pursuing growth-friendly fiscal consolidation.
The Finnish Vice-President said that Eurozone’s rebalancing is underway but the creation of a Convergence and Competitiveness Instrument (CCI) remains necessary. CCI will push forward Member States' reforms for rebalancing and competitiveness. He connected wages with Member State’s productivity urging Eurozone countries not to lose their international competitiveness status. Moreover, the Commissioner asked for more entrepreneurs saying that Europe needs them.
Regarding investments, Rehn underlined the importance of the European Investment Bank’s 2013 lending programme, saying that it could catalyse investments in the range of €180 billion over three years. The loans will be directed to “support innovation and skills, SMEs' access to finance, resource efficiency and strategic infrastructure,” he stressed.
Last but not least, Commission’s Vice-President urged Member States to continue on their fiscal reforms. However, he underlined that “If growth deteriorates unexpectedly, a country may receive extra time to correct its excessive deficit, provided it has delivered the agreed fiscal effort.” NEW EUROPE
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