Mr President, there are too many states in the European Union in which the economy is stagnating, and many areas in which reforms have not been implemented. The coming year’s enlargement from fifteen to an expected twenty-five Member States presents us with an additional challenge. The Lisbon strategy is an ambitious one, and its implementation must take account of these realities. It follows that we need to set other priorities for the European employment policy guidelines. As Commissioner Vitorino has already mentioned, this is about increasing the employment rate. It is also about increasing the value of products and raising the level of productivity. It is about reforms to the various systems of taxation and social security benefits – which, Mr Schmid, are in fact matters for the Member States – where a balance is to be maintained between flexibility and security. It is about activating those who are willing to work and capable of work, and about better involvement of the local and regional stakeholders. Finally, it is about mounting a more determined attack upon the black economy. Mr Schmid was prepared to take on board many of my group’s amendments. As shadow rapporteur for the Group of the European People’s Party , I thank you for your good cooperation. Our proposals are reflected in what are now sixteen workable compromises, including on the use of educational and training methods to create workplaces of high quality, on increasing the level of investment in enterprises, on strategies for lifelong learning in accordance with the requirements and abilities of those involved, on the abolition of subsidies to industries which have no viable future, and on job creation in regions with a high level of unemployment. Despite this, a number of our core points are absent from the areas of the setting up of new enterprises, monetary policy and taxation. Firstly, one of the essential aspects of the European Employment Strategy’s approach is the practical support for the setting up of enterprises, which goes beyond simplified administrative procedures and involves the extension of information networks for those starting new businesses. If these – and as a result, new jobs – are to be created, there needs to be easier access to credit on favourable terms, so we need more dependable equity capital finance – an area where the European Union differs to a marked degree from the United States. If there is sufficient liquidity, then competitiveness is ensured. Secondly, we cannot accept the renewed attempt at marginalising the Stability Pact, on which, in the eurozone, the confidence of economic decision-makers and consumers depends. It cannot be put to one side, even if, in certain Member States, ministers make so bold as to negotiate exemptions for their portfolios. The logical consequence of undermining the Stability Pact, which is so important, would be the loss of public confidence and the weakening of the euro, which is, thank God, a strong currency. Thirdly, there must be incentives in law to make employment more attractive to workers and employers. This should involve reducing the tax burden on work to such an extent that the creation of new jobs ends up being less costly, which will make it possible to combat more effectively the black economy, which is booming. Overall, we should be working towards reducing the tax burdens in the Member States – for it is at that level that they are imposed – to such an extent that the public can again afford more and enterprises can at last get back to being more entrepreneurial. I very much hope that these amendments from the Group of the European People’s Party , which we again discussed last night, will be approved by the plenary at noon today. Only then, Mr Schmid, will I be able to recommend to my colleagues in the Group of the European People’s Party that they should endorse this report – only then! (Applause)

Political group: PPE-DE