Celebrations premature, business tells EU leaders 

The EU is still 22 years behind the United States in terms of per-capita income levels and the gap is getting wider, according to a study by the Association of European Chambres of Commerce and Industry (Eurochambres), published on 5 March 2007. 

EU GDP per capita would have to grow by more than 8% annually to reach current US levels by 2010, states the report, which also comments that the EU is already 3.4 years too late with regard to the target of 70% employment by 2010. 

Furthermore, current European R&D investment levels were reached by the US in 1978. 

Faced with this situation, business leaders are calling for strong commitments from EU leaders to: 

• Unleash business potential by reducing administrative burdens by 25% within five years, both at EU and national level. However, in February EU industry ministers rejected binding targets to cut national bureaucracy (see LinksDossier on Better Regulation); 
• create jobs by introducing labour market reforms that increase the flexibility of regular employment contracts (see LinksDossier on Labour market reforms); 
• reinvigorate the internal market, by better enforcing the mutual recognition principle for both goods and services. Completing an internal market for energy is also key (see LinksDossier on Liberalisation of EU energy markets); 
• boost research and innovation, by setting up the European Institute of Technology and making concrete progress on a community patent (see LinksDossier on the Community Patent), and; 
• get the international trade agenda back on track (see LinksDossier on the WTO Doha Round). 

Progress has been made by member states on the Lisbon Agenda, but "this progress does not satisfy business expectations", according to BusinessEurope's 'European reform barometer'. 

Although the group feels that efforts to improve the research environment and to integrate more people into the labour market have been paying off, it underlines a number of disappointments. 

"Despite the economic recovery, EU countries have failed to adapt public finances to population ageing," said Secretary-General Philippe de Buck in a press conference on 5 March. He also stressed that better regulation initiatives "have resulted in little real alleviation for companies so far". 

In a joint statement with Eurochambres, Eurocommerce and UEAPME (which represents crafts and SMEs), BusinessEurope called on EU leaders to stick to the target of reducing administrative burdens by 25% "also at national level". 

"To date, only a handful of member states have set clear targets and designated structures for improving regulation. We need a genuine commitment from all member states," said Eurochambres President Pierre Simon. 

He added: "We do acknowledge that the EU is experiencing a period of sustained economic growth…However, the EU would need monstrous yearly performances to reach the current US levels by 2010. We call on political leaders, gathering in Brussels this week, to reinforce the focus on growth and jobs, and to take advantage of the favourable economic upturn to suggest radical structural reforms." 

According to the four business groups, the deepening of the internal market is crucial. "The internal market is a cornerstone of the EU. It is extremely worrying to see a lack of mutual confidence between member states and increasing national protectionism standing in the way of its completion," they said, calling for more effective infringement procedures, improved business impact assessments and the creation of an independent controlling body.