Mr President, Commissioner, I want to begin by thanking both rapporteurs for a sterling piece of work. I wish in particular to recognise Mrs Randzio-Plath’s solid work on this report. She has also done some sterling work for the Committee on Economic and Monetary Affairs. Your chairmanship, Mrs Randzio-Plath, has been characterised by impartiality, knowledge and professionalism. I am quite sure that the Committee on Economic and Monetary Affairs will miss you. Thank you. The EU economy still suffers major problems. Overall growth has not achieved the rate we had desired and expected. Even if the American economy is improving all the time, many problems remain. The double deficit and the political uncertainty are undermining economic strength. Nor is growth in the eurozone impressive. We are well aware of the current figures. When it comes to the EU of the Fifteen, it emerges that the countries concerned have greater economic strength, with growth of 2% this year and 2.4% next year. Things are significantly better in the new Member States, with growth of 3.5% this year and, on average, 4% next year. Those are figures we can virtually only dream about in the EU of the Fifteen. We know that the changes in the new Member States have been very far-reaching and often painful. The trend is manifestly in the right direction, even if a number of objections may be raised and caution recommended in the manner, for example, of today’s statement by the International Monetary Fund. The EU of the Fifteen should be able to learn more from the new Member States with a view to giving impetus to the economy. The competition and the increasing market that is now opening up are to everyone’s advantage. Instead of criticising countries like Slovakia and Estonia which have reduced their taxes and in that way created room for growth, we should see what we can learn from their having done this. Above all, it would be devastating if, in an attempt to standardise and direct the national economies, the EU were to force the new countries to introduce tax increases and extensive welfare reforms at a rate that they themselves are not in favour of. Certainly, competition will become tougher. It has done so already. Corporation tax in the new Member States is lower than in our own countries, but healthy competition is to be welcomed. There is still a need for structural reforms in quite a few of the Member States. We know who the sinners are, and the list of these will unfortunately become longer. The Netherlands and Great Britain are next to be added. Where the Stability and Growth Pact is concerned, we think that this has operated well. It is already flexible. Certainly, the rules can be reviewed, but pacta sunt servanda. We Liberals believe that Europe can extricate itself from these economic problems but, if it is to do so, more must be done. The Lisbon process must be implemented in full. The Liberal recipe for enabling the EU Member States to obtain growth and more jobs involves sound public finances, increased competition, completion of the internal market in all its aspects and structural reforms for the future. We shall not support the extra amendments in Mrs Randzio-Plath’s report, but we are prepared to support the rapporteur’s balanced assessment. Mr President, we face huge challenges in Europe, but the opportunities in the new Europe are so much greater. Peace, freedom, democracy and social and economic stability now dominate Europe.

Political group: ELDR