Business Location Europe
Strengthen EU competitiveness
The European internal market is one of the strongest economic areas on earth. Since its creation, the EU has been an engine for growth and jobs. But the EU still faces great challenges: at a time of increasing global competition and ageing societies, Europe must secure its future as a location for business.
European integration is a success story: it has led to more growth and to creation of jobs, and has been the foundation for a stable political environment. With more than 497 million people and a gross domestic product of more than 12 trillion euro in 2007, the European internal market has become the world’s leading location for foreign direct investment.
But, despite the success, the European Union faces great challenges: unemployment that is much too high also on an international comparison, growth that is too weak and insufficient investment in research and development are the pressing problems which Europe must firmly grasp. The ageing of European societies and fiercer competition from countries seeking to move up the global economic ladder will also leave a decisive mark on Europe’s future economic development. Both developments – increasing life expectancies for Europeans and a more closely intermeshed global economy – are positive processes in themselves. But they call for political responses so that they can be optimally exploited and turned into opportunities for as many people as possible. The key issue is that the competitiveness of Europe as a business location will have to be strengthened.
Step up the pace of reform
To this end, in 2000 European heads of state and government set themselves the goal of making the European Union the most competitive and dynamic knowledge-based economic area in the world by 2010. The responsibility for transforming Europe into an economic area which attracts more investment, generates more growth and leads to more jobs lies both with the member states and with the EU. At national level, the necessary structural reforms have to be carried through, that means in particular consolidating public budgets, organising social systems for the future with a view to demographic trends and making labour markets more flexible. The task of the European level is to support and flank these efforts. The main aims are completing the internal market, dismantling bureaucracy and simplification of the European legislative framework through better regulation, simplifying the innovative capacity of companies and promoting entrepreneurship as well as ensuring a stable currency. After the financial crisis, the goals set by heads of state and government for 2010 will not be reached. Nevertheless, they must not be given up. Europe must not be satisfied with the little that has been achieved. On the contrary, the conclusion that must be drawn from the goals not reached must be that the pace of reform needs to be stepped up.
Strengthening EU competitiveness and creating business-friendly framework conditions are not ends in themselves but the basis for social and ecological progress. When the so-called Lisbon strategy was reviewed in 2005, the European Commission made it very clear that the EU can only meet its social and ecological objectives with more growth and jobs. EU and member states must therefore develop coherent political approaches to strengthen Europe’s attractiveness as a business location and implement them with determination. Only then can sustainable employment growth and hence more prosperity for all be achieved.
But, despite the success, the European Union faces great challenges: unemployment that is much too high also on an international comparison, growth that is too weak and insufficient investment in research and development are the pressing problems which Europe must firmly grasp. The ageing of European societies and fiercer competition from countries seeking to move up the global economic ladder will also leave a decisive mark on Europe’s future economic development. Both developments – increasing life expectancies for Europeans and a more closely intermeshed global economy – are positive processes in themselves. But they call for political responses so that they can be optimally exploited and turned into opportunities for as many people as possible. The key issue is that the competitiveness of Europe as a business location will have to be strengthened.
Step up the pace of reform
To this end, in 2000 European heads of state and government set themselves the goal of making the European Union the most competitive and dynamic knowledge-based economic area in the world by 2010. The responsibility for transforming Europe into an economic area which attracts more investment, generates more growth and leads to more jobs lies both with the member states and with the EU. At national level, the necessary structural reforms have to be carried through, that means in particular consolidating public budgets, organising social systems for the future with a view to demographic trends and making labour markets more flexible. The task of the European level is to support and flank these efforts. The main aims are completing the internal market, dismantling bureaucracy and simplification of the European legislative framework through better regulation, simplifying the innovative capacity of companies and promoting entrepreneurship as well as ensuring a stable currency. After the financial crisis, the goals set by heads of state and government for 2010 will not be reached. Nevertheless, they must not be given up. Europe must not be satisfied with the little that has been achieved. On the contrary, the conclusion that must be drawn from the goals not reached must be that the pace of reform needs to be stepped up.
Strengthening EU competitiveness and creating business-friendly framework conditions are not ends in themselves but the basis for social and ecological progress. When the so-called Lisbon strategy was reviewed in 2005, the European Commission made it very clear that the EU can only meet its social and ecological objectives with more growth and jobs. EU and member states must therefore develop coherent political approaches to strengthen Europe’s attractiveness as a business location and implement them with determination. Only then can sustainable employment growth and hence more prosperity for all be achieved.
