13 March 2013

Speech by President Barroso on the forthcoming European Council on 14-15 March 2013

"It is important that the European Council strongly endorses the priorities and actions outlined in the Commission's Annual Growth Survey for 2013, pursuing growth-friendly and tailor-made fiscal consolidation in all Member States."

We will not allow the momentum for the European Union's reform to slow down. The proper functioning of the EMU requires that its governance structures are completed in particular in the area of economic policy coordination and support to structural reforms. That will be the focus of the June European Council, and we are already working on specific measures and a time-bound roadmap on the ex-ante coordination of major economic reforms; on the social dimension of the EMU, including the social dialogue; and on a framework for mutually agreed contracts for competitiveness and growth, combined with respective solidarity mechanisms.

At the same time we are pursuing a social agenda as an integral part of our strategy to exit the crisis. The position we took in the MFF discussions consistently made the same point: that the European investment agenda needs also to focus on solidarity and growth, aiming funds at those who need our support the most. The youth employment initiative, the youth employment package that includes the youth guarantee scheme and the social investment package are just a few examples.

But let's be honest, we need short-term measures to reinforce the perspectives for growth. Implementation of the Compact for Growth and Jobs is too low and too slow. There has not yet been enough commitment to address social obligations. We have to be sensible to social needs...

I want to stress that there should not be any contradiction between the social and the competitiveness agenda. Indeed, we can see that the most successful Member States in European Union, indeed some of the most successful in the world, are those with the most effective social protection systems. But this is possible because of their high level of competitiveness, and we should be equally committed to both goals. Improving competitiveness is not an end in itself but a means to drive prosperity and sustain European living standards and values. Competitiveness is an indispensable element to underpin growth and jobs.

Efforts at European level can never be an alternative to national reforms and investments. In terms of productivity, we see that the best performing Member States are twice as productive as the lowest performers. We guide and support them towards closing the gap, but the real groundwork has to come from the Member States themselves.

It is important that the European Council strongly endorses the priorities and actions outlined in the Commission's Annual Growth Survey for 2013, pursuing growth-friendly and tailor-made fiscal consolidation in all Member States; focused on restoring normal lending to the economy and modernising public administration.

The structural reforms for competitiveness and the measures against unemployment, in particular youth unemployment, deserve special attention in the design of the national reform programmes. And in particular, the political push to fill the gaps in the single market should be maintained. Because there are still too many and too significant gaps in the single market; gaps that hamper competitiveness; gaps that restrict opportunities and cost jobs.

The Single Market is just one, but a fundamental source of growth in the real economy. There are other very important ones. We also need an MFF for the next seven years, to ensure the investments Europe badly needs. And since our trade policy is part of our growth agenda, I would also like to once again underline the significance of the decision to start negotiations with the US on a Transatlantic Trade and Investment Partnership.

The Commission has agreed the draft negotiating mandate yesterday, and we will continue to push hard to bring these economically very promising talks to a successful conclusion. We would like to receive the mandate of the Council as soon as possible so that we could start negotiations by the summer. We will need such new sources of growth just as we will have to further unleash the potential of our internal sources.

This issue is a reminder of the fact that, despite our economic and also political worries, we should not turn inwards. Our efforts towards competitiveness and growth are of course about the economy, are about the urgent social needs, but also about our position and influence in the world; about our values and how we support them internally and internationally. About the European way of life. That is why, in spite of all of our difficulties or precisely because of them, we need the confidence that is indispensable for the process of recovery. This is why we must show the leadership necessary, yes, to recognise the obstacles but also to show the determination to overcome those obstacles.

Full speech

© European Commission