AmChams to Europe: restore stability27.06.2012, 12:00
AmChams in Europe urge European leaders to take more bold actions to reduce the current economic turbulence in the European Union and establish more confidence among business and consumers alike.
Without this, the current crisis will cost the EU dearly and undermine the European project that took decades to build and compromise Europe’s ability to rebound economically.
‘What’s needed at this time is more and deeper fiscal and economic integration to revitalize business confidence to generate investments and increase private funding. Sustained efforts to implement structural economic reforms will generate growth and increase competitiveness’, stated Hendrik Bourgeois, Chair, AmCham EU. He went on to say, ‘It is becoming increasingly clear that restoring stability and confidence will also require additional pooling of sovereignty. The business community needs decisiveness, and a credible road map and a timetable for deeper integration, resolution on sequencing, and enhanced economic governance, with increased responsibility and controls’.
. Calls for rapidly implementing the Treaty on Stability, Coordination and Governance. Better budgetary and economic coordination and tighter fiscal controls are crucial to restoring investor confidence.
. Encourages an outcome on the debate on a Banking Union. The benefits that a single market for financial services brings to Europe are of paramount importance and must be preserved and promoted. As the G20 leaders recently declared, it is important to take all necessary policy measures to safeguard the integrity and stability of the euro area, improve the functioning of financial markets and break the feedback loop between sovereigns and banks.
. Believes that greater risk sharing would strengthen the Euro and could act as an impetus requiring Eurozone countries to monitor more closely each other’s spending and prevent Member States undertaking reckless public expenditures. The leaders need to make progress on the discussions on Eurobonds or an EU Debt Redemption Fund.
. Urges adoption of a strong, multiannual EU budget by the end of the year. This is the most effective common instrument for economic growth. Focus should be placed on expenditures (including structural funds) that will deliver future growth and will bring the greatest added value to national spending.
. Supports European Project Bonds and the further development of public-private partnerships. Well managed pilot programs could significantly reverse the net decline in European investment over the last 30 years. Investment in transport, energy and telecom infrastructure is greatly needed and can support growth jobs and training.
. Calls for increasing the firepower of the European Investment Bank (EIB). It is necessary to enhance the EIB’s lending activity. However new sources of financing cannot replace Member States’ responsibilities to maintain a high level of productive public investment.
Along with deeper fiscal and economic integration Europe also needs to:
. Deepen and reinforce the Single Market;
. Reform Labor Markets and Better Prepare the workforce;
. Boost innovation; and
. Increase trade and investment and a Transatlantic Economic Partnership.