IS OFTEN NEEDED TO CREATE MORE EMPLOYMENT OPPORTUNITIES AND TO CLEAR THE LABOUR MARKET MORE EFFECTIVELY , EVEN IN COUNTRIES WHERE AGGREGATE PAY HAS EVOLVED REASONABLY . SECONDLY , PAY NEGOTIATIONS SHOULD BE ADAPTED FAR MORE DIRECTLY TO HELPING THE INDIVIDUAL ENTERPRISE TO INVEST AND EXPAND . EUROPE WOULD PROBABLY BENEFIT FROM A HIGHER SHARE OF REMUNERATION BEING RELATED TO ENTERPRISE PROFITS AND PERFORMANCE , A PRACTICE WHICH IS FAR MORE DEVELOPED IN JAPAN . SCHEMES FOR PARTICIPATION OF EMPLOYEES IN THE CAPITAL WEALTH OF THE ENTERPRISE ARE ON A MODEST SCALE . IMAGINATIVE SCHEMES ARE CALLED FOR TO ADAPT PAY TO THE OVERWHELMING NEED IN THE YEARS AHEAD FOR HIGH INVESTMENT FINANCED BY RISK CAPITAL . WHILE THE MAIN INITIATIVE MUST LIE WITH THE SOCIAL PARTNERS , GOVERNMENTS CAN , AS ALREADY INDICATED , ENCOURAGE THE PROCESS WITH REGULATORY AND FISCAL PROVISIONS .
RE-EXAMINATION OF REGULATORY FUNCTIONS OF GOVERNMENT
IT IS INCREASINGLY RECOGNIZED THAT MANY REGULATORY ACTIVITIES AND MECHANISMS DO NOT PROPERLY ACHIEVE THEIR DESIRED GOALS , OR DO SO AT VERY HIGH COSTS - BOTH IN TERMS OF ADMINISTRATION AND DISINCENTIVES TO INNOVATION AND TO THE LEGALLY IMPOSED EFFICIENCY OF RESOURCE ALLOCATION ; THUS THEY MAY HAVE IN EFFECT A DEPRESSING IMPACT ON THE POTENTIAL RATE OF GROWTH . RECENT ACTIONS TO REDUCE THE ECONOMIC COSTS OF ( BROADLY DEFINED ) REGULATION ARE EXTREMELY DISPARATE IN NATURE , AND NO DOUBT LEAVE LARGE FURTHER SCOPE FOR REFORM . SUCH EXAMPLES INCLUDE THE EASING OF RENT REGULATIONS IN GERMANY , OF THE CONDITIONS OF LABOUR RECRUITMENT IN ITALY , OF WORKING TIME REGULATIONS IN BELGIUM , THE INTRODUCTION OF LIGHTLY REGULATED ENTERPRISE ZONES IN BELGIUM AND THE UNITED KINGDOM , AND THE PRIVATIZATION OF SOME STATE ENTERPRISES , AND IN THE NETHERLANDS A WIDE-RANGING PROGRAMME OF ACTION TO STREAMLINE REGULATIONS THAT IMPEDE ECONOMIC ACTIVITY .
THERE IS TYPICALLY A VERY WIDE RANGE OF RESTRICTIVE ARRANGEMENTS AFFECTING SERVICE BRANCHES AND THE PROFESSIONS AS WELL AS INDUSTRY AND LABOUR MARKETS .
COMPETITION POLICY IN ITS TRADITIONAL SENSE IS USUALLY QUITE LIMITED IN SCOPE BY COMPARISON WITH WHAT NEEDS TO BE DONE . MANY SERVICE BRANCHES , WHICH ARE SOMETIMES SELF-REGULATED OR LOCALLY REGULATED , ARE GOOD CANDIDATES FOR REVIEW - FOR EXAMPLE RESTRICTIONS ON OPENING HOURS OF SHOPS . MANY FINANCIAL SERVICES AND PROFESSIONAL ACTIVITIES ARE NEEDLESSLY COMPARTMENTALIZED AND SHELTERED FROM COMPETITION , IMPOSING HIGHER COSTS ON THE ECONOMY - OR , DIRECTLY , A HIGHER COST OF LIVING . MONOPOLISTIC ARRANGEMENTS IN VARIOUS BRANCHES OF INDUSTRY MAY HAVE LOST THEIR RAISON D'ETRE , FOR EXAMPLE , FOR REASONS OF TECHNOLOGICAL CHANGE . WHILE NOT CALLING INTO QUESTION BASIC STANDARDS OR SOME RECENT WELL-FOUNDED REGULATORY LEGISLATION , THERE ARE NEVERTHELESS LABOUR LAWS , OFTEN INTRODUCED AT TIMES OF FULL EMPLOYMENT AND OF A SMALLER INCOME-REDISTRIBUTIVE ROLE OF THE STATE , WHICH NEED TO BE RE-EXAMINED FOR CONFORMITY WITH PRESENT ECONOMIC AND SOCIAL PRIORITIES .
IN CONCLUSION , FOR THE PERIOD AHEAD , THERE IS MUCH MORE TO BE DONE IN MEMBER