Mr President, this House has always demanded that economic, employment, social and finance policies should be coordinated and considered as a whole, in order to provide the European Union with a coherent strategy for growth, employment and society. We think it right that we should be doing as we now are and considering these broad economic policy guidelines not merely over a year, but over a longer period. That does not, however, mean that we do not have to take a very practical and critical look at these guidelines and at the need to adapt to changes in growth and employment. We can see very clearly that the European economy is continuing to lose its strength, and that, within the eurozone, recovery, where it has occurred or has had a beneficial influence on growth, is primarily attributable to a steep rise in exports, while domestic demand has sunk as a result of low levels of private consumption over several quarters. That must surely give us cause for concern, and so we want to consider and reformulate these broad economic policy guidelines in such a way as to stimulate economic growth and enable it to become more sustainable in economic, social and environmental terms. Only if all the Member States keep to what has been agreed will this be possible. I will now reiterate Parliament’s criticism to the effect that many Member States are not keeping to their commitment on the Lisbon strategy of combining and bundling all measures aimed at creating truly sustainable growth and also enhancing competitiveness. This is why I believe that the policy guidelines must be targeted even more than before at stimulating economic growth by way of investment and job creation, thus bringing about a rise in productivity. While the Growth Initiative, with this as its end, is surely to be welcomed, the guidelines should also express in clear and definite terms a concentration on human resources, research and development, and innovation, as well as on an industry policy that particularly prioritises small and medium-sized enterprises, renewable energies and environmentally-friendly technologies. Although the environmental technologies action plan must be implemented, we must not forget the need to invest in social infrastructure, for there will be no increase in productivity if we do not make work and family more compatible and thereby increase the number of women in work. This I do regard as a very important measure; it cannot be too much stressed that this is an area in which many Member States must make much more of an effort. Nor is the funding of growth-promoting investments any more adequate, and we should also be including in the broad economic policy guidelines coordinating measures to combat unfair tax competition and tax evasion. Indeed, the spending envisaged in the present Quick Start programme and in the Growth Initiative will take us no further than that, as all the economic research institutions are of course right to state that no investment under 1% of gross domestic product will have the desired effect, in particular, the positive effect hoped for on the vast mass of people in the European Union – over 14 million of them – who are unemployed. The broad economic policy guidelines must continue to focus on social and regional cohesion and on convergence in real terms, but there must be greater clarity as to which policy mix will actually prove successful, as we need strong synergy effects between, on the one hand, the necessary structural reforms and, on the other, investment and macro-economic policies aimed at stability and growth. This, of course, is where intelligent use of a more flexible Stability and Growth Pact is called for. Transparency and participative implementation of the Lisbon strategy are not just lofty ideals; these approaches really do promise a great deal in terms of using reform partnerships as a means of implementing the Lisbon strategy. It is my belief that such partnerships for change must concern themselves with economic, social and environmental issues across the board if the Lisbon strategy is to be improved and moulded into a more political form. Affirming, as I do, the spirit of Lisbon, I believe that this is the most comprehensive strategy for the purpose of mastering the problems of the European Union, but we must, of course, respond to economic change by updating these guidelines every year, which, as we can see, is becoming more and more necessary. Any reform of the structural funds must also take into account the importance of forging a link between the economic policy guidelines and the structural funds and the use made of them. Moreover, the whole must be formulated in such a way that all the partners really are compelled to make the connection in the interests of sustainable growth, full employment and social cohesion.

Political group: PSE