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Presidency Must Drive Economic Reform, Says Kirkhope

Wednesday January 12, 2005

In March, the European Council will carry out the mid-term review of the Lisbon process. It will do so against the backdrop of the Kok Report on the Lisbon Strategy which was blunt in its assessment of the lack of progress with the process.

Timothy Kirkhope MEP, Leader of the Conservatives in the European Parliament, commented:

"I urge the presidency not to be distracted by the siren calls of those who urge that the preservation of the so-called 'European model' is the most important political priority. It is not. It is precisely because so many governments have failed to grasp the nettle on radical reform that the Lisbon process is in such dire straits. The United States continues to out-perform us and the competitive challenges from Asia, particularly China and India, are increasing with no apparent urgent response from national capitals in the Union".

"The presidency must be unequivocal in its support for economic reform, for greater labour market flexibility, for more competitive taxation policies and reducing barriers to employment growth, particularly the excessive regulation that pervades our economies".

"With high unemployment a factor across Europe, the people are waiting for practical ways to get them back to work. Reform will be difficult, fraught with political risk. But, as the United Kingdom under Margaret Thatcher in the 1980s and Spain under Sr. Aznar in the 1990s proved, a resolute approach to economic reform delivers results. Low taxation, flexible labour markets, less red tape and a determination to tip the balance firmly in favour of the wealth creators offers the only way out of relative economic decline. These things are anathema to Socialists, but good for all of us".

"We look to the Spring Council in March to reverse the failures of recent times, and put Europe firmly on a free market and enterprise-driven path."

Read the speech in full

ENDS

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