PES Finance Ministers Statement, 14 February 2006

PES Finance Ministers and Opposition Spokespersons on Finance thank the European Commission for its contribution to the Spring European Council. It is a useful contribution to achieving the objectives of the Lisbon strategy. The proposal to invest more in knowledge and innovation is positive. Europe cannot and should not compete with low skilled, cheap labour working under poor conditions but must prioritise skills, competence, quality and knowledge.

We also view as a positive step the European Commission’s acknowledgment that there needs to be more coordination of economic policy and we would like to see a more concrete proposal at the Spring Summit focusing on investments in research and development, education and training, child care, social services and renewable and efficient energy. The exchange of best practices would have to be an important element of some key investments, specifically in child care and social services.

Several EU Governments have announced investments in economic growth and the Lisbon objectives in recent months, promoting a more balanced economic policy mix. The European Union should encourage all Governments to make such investments while – as the union itself - respecting overall needs for budgetary consolidation. It should promote the coordination, on an inter-governmental basis, of simultaneous investments and put more of its own resources into intelligent European investments.

Good unemployment benefit systems should also be combined with active labour market policies and our vision of higher flexibility in our labour markets, which is what true flexicurity means for us. Flexicurity aims at combining the need to enhance the flexibility of labour markets, work organisation and labour relations with jobs, wages, social security and employment security, in an integrated and balanced manner. 

Europe can only become more competitive through a sound combination of economic reform and investment in people. Only by achieving a more effective mix of reforms and investment will Europe achieve the economic growth it needs.

We call on the EU Spring Summit to support and strengthen the European Commission’s proposals by calling for
- A European inter-governmental investment strategy of coordinated and simultaneous investments in a number of areas including research and development, education and training, child care, social services and renewable and efficient energy. European funds should be used in relevant policy areas.
- The exchange of best practices in key areas such as child care and social services.
- A better macroeconomic policy mix, where demand and supply side economic policies interact.