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Will Spring Summit overcome "protectionist winter"?

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Published 23 March 2006
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Competitiveness Lisbon Agenda security of supply
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The 23-24 March EU Summit is set to endorse the European and national Lisbon reform programmes and lay the foundations for more cooperation on energy policy, but a populist spirit of "economic patriotism" might thwart good intentions.

Officially, the Spring Council is expected to end with the following conclusions:

  • endorsement of the national reform programmes for growth and jobs;
  • support for the concept of "flexicurity" (flexibility + security) for labour reforms;
  • agreement to establish the European Globalisation Adjustment Fund, which will provide support for workers who have lost their jobs as a result of globalisation;
  • support for the idea of a European Institute for Technology;
  • a call for an Energy Policy for Europe balancing the needs of environmental sustainability, competitiveness and security of supply.
Positions: 

In a press statement, Commission President Barroso called on the EU leaders to "turn away from protectionism" and "deliver progressive reforms".

The European Round Table of Industrialists (ERT) warned that the "sharp rise in economic nationalism" will contribute to "the erosion of the European Single Market". "Responsible policy makers do mot make irresponsible decisions. They have a duty to strongly resist such moves in the long term interest of their electorates", the ERT press release concludes.

But popular protest against reforms and the fear of losing the next election, is what makes some politicians play the national interest card again. 

The European Trade Union Confederation (ETUC) made the following analysis in a resolution to the Spring Council: "Workers in Europe are worried about the lack of decent jobs, precarious and insecure jobs that are spreading throughout the economy and about the rising levels of poverty and social exclusion. They reject a policy agenda that, using the alibi of ‘business friendly’ competitiveness, will make matters worse by reducing wages, working conditions, social protection and prolonging working hours".

In a policy brief presented on 14 March, European think tank Bruegel sounded a strong warning about the EU's Lisbon reform agenda. In their report, Researchers Jean-Pisani-Ferry and André Sapir warned EU leaders not to miss the "last exit to Lisbon".

 

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Background: 

EU heads of state and government will meet for their annual Spring Summit on 23-24 March. Some of them are facing serious challenges on the home front and could try to use the summit for their own credibility or survival.

French President Chirac and PM de Villepin are confronted with social unrest and protests against labour market reforms. Italy's Silvio Berlusconi is busy fighting a difficult election campaign and might want to score some points in Brussels and UK's Tony Blair is stained by a secret loans scandal to his party.

Furthermore, a new wave of potential cross-border mergers in the energy sector and the Mittal-Arcelor case have strengthened the arguments for a new protectionism, which are hiding behind the phrase "economic patriotism".

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