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News

Study: Europe 'a magnet for the low-skilled'[fr][de]

Published: Friday 20 June 2008

As globalisation puts increasing pressure on the European economy, business representatives discussed the best ways to maintain the EU's competitiveness at a conference in France. A key issue is how to attract higher skilled workers from abroad, EurActiv France reports.

Background:

European businesses are becoming increasingly frustrated by the lack of progress in the Doha Round of global trade negotiations in the World Trade Organisation (WTO) (EurActiv 27/05/08), where agricultural subsidies and customs duties on agricultural products are among the sticking points holiding up progress on improving market access for industrial goods and services. Such progress is crucial if healthy growth rates in Europe amid growing competition from China and India are to be maintained.

A conference organised by French employers' organisation MEDEF on 16 June 2008 brought together representatives of French and European business to debate solutions to Europe's competitiveness challenge.

The findings of a study carried out by the Washington, DC-based Center for Transatlantic Relations on behalf of the American Chamber of Commerce to the EU (AmCham EU), entitled "Globalisation and Europe: France and globalisation", were also discussed during the event, for which EurActiv was a media partner. The conference was moderated by Christophe Leclercq, the founder of EurActiv.com.

Other related news:

Europe receives a net influx of one million immigrants per year, according to a Center for Transatlantic Relations study discussed at the conference. The study sought to analyse the impact of globalisation on migration to Europe and particularly France.

The vast majority of foreign migrants settling in the EU from developing countries are poorly-qualified (85%), it found. But highly-qualified workers choose the US, where they constitute 55% of foreign labour compared with 5% in Europe.

The French Government has identified immigration as one of the key themes of its upcoming EU Presidency with concerns over illegal immigrants high on the political agenda. "There are tangible economic advantages of globalisation but they are difficult for the citizen to perceive, while the drawbacks are localised," said Daniel Hamilton, the author of the study and a professor at Washington, DC's John Hopkins University.

The French intend to push for the establishment of a common European immigration policy while at the EU's helm, including plans for an 'EU Blue Card' to encourage more high-skilled immigration (see our Links Dossier).

Positions:

"There will always be winners and losers of globalisation but it has given a lot to Europe and particularly France," said Daniel Hamilton, the author of the Center for Transatlantic Relations study and a professor at Washington, DC's John Hopkins University. If citizens are to continue to support globalisation, then a social system to protect them from it must be developed at the same time, he added.

Hamilton called on France to strengthen its support for small and medium-sized enterprises and invest more in research and development to improve its competitiveness in the global market.

Describing Europe as "an asset for France," Pierre Nanterme, the president of the economics division at French employers' organisation MEDEF, said: "If France were more competitive, she could become one of the greatest economies in the world."

Meanwhile Frédéric Sanchez, the president of the organisation's international division, described globalisation as "an opportunity, not a risk," stressing the importance of bringing the Doha Round of WTO trade negotiations to a successful conclusion.

Bernard Pellereau, Honeywell's president for Europe, the Middle East, Africa and India, said the growth of the company depends on its capacity to innovate and develop new technologies. "The key issue is whether or not Europe can be competitive enough in these areas to attract investment," he declared.

General Electric President and CEO Ferdinando Becalli-Falco said "people are scared of globalisation because they believe it may cause them to lose their jobs," calling for communication on the issue to be improved. "For France and Europe, one of the biggest problems is the high cost of labour compared with other countries," he added.

Becalli-Falco called for cooperation between government and private enterprise in providing technological education in Europe to be improved.

"Our company is active in all 27 EU member states, but less than 30% of our workforce is in France because profits are much higher abroad," said Pierre Brousse, the president of French construction firm Bonna Sabla. Regarding French citizens' negative perception of globalisation, Brousse declared: "It is difficult for a government to represent the interests of both citizens and business."