Local view for "http://purl.org/linkedpolitics/eu/plenary/2006-04-04-Speech-2-047"
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"en.20060404.6.2-047"2
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"First of all, I would like to thank the rapporteur, Mr García-Margallo, for a balanced report that is very much to the point. As the report frequently reiterates, one of the serious problems facing the European Union at present is the fact that most Member States underestimate the need for far-reaching structural reform. Paradoxically, some Member States have tried to address the loss of competitiveness that is a natural consequence of rejecting such reform by implementing new measures to protect their markets, which only makes the problem worse. We must again concede that the internal market is not fully functional and does not enable the free movement of labour or the free provision of services. The consequences of this approach are markedly negative. Companies have been relocating their operations to areas with cheaper labour or, alternatively, have been outsourcing them, which has also caused job contraction.
In macroeconomic terms, one major result of such a policy is slow growth and, given the unchanged structure of public finances, a deteriorating general government deficit, frequently exceeding the limits imposed under the Stability and Growth Pact. If we take into consideration the low volumes of investment in research, technological development and innovation, and if we add the high energy dependence of most Member States, we can hardly expect a significant increase in the competitiveness of the European economy vis-à-vis major global players such as the USA and China. We must respond quickly to these challenges by putting in place a fully functional internal market, operating without any discrimination and unhampered by unnecessary regulation.
The harmonisation of European legislation must advance rather than hinder the competitive environment. Efforts to harmonise corporate income tax provide unfortunate examples of such hindrance. In order to increase the internal competitiveness of Member States, and hence of the entire EU, the subsidiarity principle must become a significant component of all Commission initiatives. In this respect, I also welcome the action programme on state aid reform that puts conditions in place for more investment into research, technological development and innovation, aiming to benefit small and medium-sized enterprises. By the same token, we should praise the Green Paper on a European strategy for a sustainable, competitive and secure energy supply."@en1
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