HISTORIC PRESS RELEASE : White Paper sets out vision for European Economic Reform [February 2002]

The press release issued by HM Treasury on 28 February 2002.

A White Paper on European Economic Reform was published today by Chancellor Gordon Brown and Trade and Industry Secretary Patricia Hewitt.

Realising Europe’s Potential sets out a blueprint for economic reform in Europe over the next decade, ahead of the Barcelona European Council next month. It outlines a vision of the EU as a dynamic, job creating and socially inclusive economy and considers the challenging reforms of product, labour and capital markets needed to achieve this vision.

Key proposals include:

– Reforming Europe’s labour market policies to regain the conditions for full employment and tackle social exclusion
– Modernising competition policy and reforming state aid
– Creating a single financial services market and improving access to venture capital.
– Opening up EU energy markets
– Reform of the Common Agricultural Policy
– Boosting innovation by forging closer links between industry and academia

Gordon Brown said:

“Each continent must play its full part in restoring world growth. We can all do more. America by keeping markets open. Japan by radical banking reform. Europe by the reform of capital, labour and product markets we recommend today. These are vital to facing the challenges of global competition, EU enlargement and eight per cent EU unemployment.

“EU enlargement will happen – we welcome it. But we must ensure that it takes place in a way that increases trade, stability and prosperity within the EU, rather than slowing it down.

“At the European Summit in Barcelona next month we must make headway on the economic reform agenda – all member states must play their part.

“At the Lisbon summit two years ago Europe acknowledged that it was not living up to its potential. A ten year goal was set to become the most competitive and dynamic knowledge based economy in the world. Its foundations will be comprehensive reforms to product, capital and labour markets.

“Some progress has been made since Lisbon. Five million new jobs, agreement on a new regulatory framework for communications, rapid progress in increasing internet use liberalising of postal services and a start to reforming state aids.

“But we still have a long way to go. If the EU matched US productivity we would be better off by an average of £5000 per person.

“The White Paper we are publishing today underlines our vision of the EU as a dynamic, job-creating and socially inclusive economy. It sets out challenging reforms of product, labour and capital markets that we believe are needed to realise that goal.”

Patricia Hewitt added:

“A prosperous UK depends on a prosperous Europe. Driving forward the Lisbon agenda is the key to securing this and the EU’s ultimate goal of creating 20 million new jobs in Europe by 2010.

“Key to this ambitious job creation process is better regulation across Europe. This White Paper sets out our commitment to slashing red-tape. We are determined to encourage more intelligent regulation that stimulates enterprise amongst our own business community and attracts investment from across the globe.

“We have made substantial progress at home, but there is a great deal of work to be done across Europe. If we succeed in meeting the ambitious objectives we agreed at Lisbon, then every business stands to benefit financially.

“Today’s White Paper represents an action plan that will deliver huge rewards for our business community – rewards which will deliver every EU citizen a better quality of life.”