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Barroso: "Kick-starting the stalled engine of EU growth"
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Published on 09-05-12

Marking Europe Day (9 May), EC President Jose Manuel Barroso called for lower job taxes, EU project bonds worth €4.6 billion to modernise European transport, energy and digital infrastructure and an £8 billion increase in job-creating capital for the European Investment Bank.

President Barroso emphasised that the Commission had consistently proposed growth-boosting measures to recover from the crisis, alongside efforts to get public finances back on track. He said: "We have always made clear that we cannot have stability without growth and we cannot have growth without stability.

So, I am extremely pleased to see the new momentum that is clearly building in our Member States to kick-start the stalled engine of European growth."

He added: "Reducing debt and deficits is essential to build confidence and cut borrowing costs. Every euro spent on interest payments is a euro less for jobs and investment."

But he repeated his call for EU Member States to speed up reforms, saying they should "reduce taxes on labour to stimulate job creation."

He urged Member States to "end the bickering and clear the way for the launch of the EU patent, which we estimate will save businesses €250 million per year." 

    EC President Jose Manuel Barroso

    EC President Jose Manuel Barroso

    President Barroso also reiterated the importance of "stronger action for the deepening and the enforcement of the single market."

    He set out three practical EU-level measures to boost job-creating investment. First, putting into practice the Commission's proposals for project bonds, which would "make funds available now while avoiding putting extra pressure on public finances…..a contribution of €230 million from the current EU budget could be used to attract funding of up to €4.6 billion over the next two years for key infrastructure projects in transport, in energy and in the digital area."

    Second, the EC President called for an increase in the lending capacity of the European Investment Bank. "Boosting its paid-in capital by at least €10 billion would make available much needed funding in support of job creation, particularly if targeted at small businesses."

    Thirdly, he urged Member States and the European Parliament to "agree an EU budget for the next seven years that shifts the focus of spending to growth enhancing measures."

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    Last update: 10/05/2012  |Top