European Union needs lighter regulation

The European Union needs “lighter regulation” of industry and business, and speedier decision-making “for those operating in a global market-place which is intensely competitive”, according to the Tánaiste and Minister for Enterprise, Trade and Employment, Mary Harney TD.

The Tánaiste was addressing a lunchtime press conference at Dromoland Castle, Co Clare, following a round table discussion between the EU Competitiveness Council and leading US and European business leaders. The agenda for the meeting included a discussion of the challenges facing European industry, particularly from lower-cost economies in the Far East, and the continuing productivity gap with the US.

The Tánaiste said the message from business leaders to the EU was that “outsourcing” to the Far East “is not the issue”. She added “We have got to concentrate on productivity growth and we have got to do business differently. Investment decisions will be influenced by the climate that exists in the European Union and particularly in the different member states, and we have been urged this morning to be light on regulation and supportive of innovation.”

She added that the EU needed to agree issues such as the Community patent so that inventors can have, on a European basis, a single patent that protects their inventions. “The message very clearly this morning was that Europe has the potential to grow very successfully but only if we make the right decisions in terms of legislation. It’s within our own grasp. It’s not outside influences that are keeping Europe down; it is matters to do with the EU itself and the way decisions are made.

“We need much more speedy decision-making for those operating in a market place which is intensely competitive. Reference was made for example to what happened in California where well-meaning legislation over a period of 10 years transformed California from being the most successful state in the US to becoming number 49 out of 50. We were urged not to follow the Californian example, to legislate for the floor not the ceiling; in other words to legislate for minimum standards but not to seek to create a panacea for all our problems through legislation and regulation that can destroy investment and send jobs elsewhere”.

The Tánaiste said the number one priority for the EU had to be the issue of competitiveness. “We cannot enhance the living standards of people in Europe and reduce unemployment unless we are competitive. That means we have to be very mindful of legislation and regulation. For instance we have to complete the single market. There are so many barriers in Europe to doing business, particularly in the services sector, which accounts for 70% of the jobs and 70% of GDP. There is a directive on the table. We have to agree that very quickly.

“The decision making processes make that very difficult. We were encouraged this morning to quickly agree the IGC and the new streamlined way of doing business, particularly now in an enlarged European Union of 25 members. It’s going to become increasingly difficult to get decisions in a speedy fashion.”

The Tánaiste said that the chief executive of Hewlett-Packard, Carly Fiorina, had made the point that companies and countries have to operate on a similar basis. “That means that they have to be mindful of competitiveness and able to make quick decisions, and they have to be able to operate in a flexible manner. We need to bring that flexibility and speed to the business of the European Union” she said.

ENDS.

ETE 1210.

Issued 26th April, 2004.