European Commission promises to support PES Investment Plan

The European Commission President, José Manuel Barroso, has given strong support to the proposals in the PES’ growth and investment strategy.

The strategy , agreed by European Socialist Finance Ministers meeting in October and endorsed at Downing Street later in the month by European Socialist Prime Ministers, argues that structural reforms must be accompanied by investment to kick start growth and create jobs. The strategy also argues for improved European coordination of national economic policies, including a significant European dimension in simultaneous, coordinated investments in projects such as infrastructures, networks and skills.

In an exchange in the European Parliament at Strasbourg in November Mr Barroso told the PES President, Poul Nyrup Rasmussen, “We agree that we need both elements: economic reform and investment.”

Mr Barroso claimed that the recent EU Summit – the day after the Socialist Prime Ministers signed up to the PES Growth and Investment Strategy - also agreed such an approach.   “Hampton Court was a first important step in that direction. Member States, at the highest level, agreed there that we should now chose some specific areas for investment and a coordinated approach at European Union level ... for instance on energy and research.” 

The Commission President went on to say “I promise you this ... we are trying to forge ahead not only based on an approach that reinforces our efforts in terms of economic and structural reform, but also based on a more common and integrated approach for investment so that we can boost growth and employment in Europe. I want to underline it because it is a good example of an approach at European Union level bringing added value to the efforts of the Member States.”

Commenting after the debate Poul Nyrup Rasmussen said “We will insist that the promise given by the Commission President is put into action. We in the PES will work through our Finance Ministers, our Leaders meetings and through our Parties to ensure that our plan for simultaneous investment and coordinated economic policy is adopted at the European Employment Council next spring.”
 
The exchange between PN Rasmussen and JM Barroso followed an open letter from PES President to the Commission President on his work plan for 2006.