International
Deliver on reforms, E.U. told
By Batuk Gathani
BRUSSELS JAN. 16. Even as the European Union's two largest economies, Germany and France, go to the polls this year to choose a new Parliament, there is concern about the almost stagnant
economic growth and rising unemployment — above nine per cent — in the 15 European Union member-States.
There is an urgency about the pace of economic, labour and fiscal reforms. The European Commission will today urge the 15 member-States to close the "delivery gap" or difference between promises and the actual achievements in structural and economic reforms. The E.U. aspires to become the world's most competitive economy by 2010.
The E.C. is expected to urge government leaders to focus attention on boosting employment. Today, some nine per cent of the E.U.'s workforce depends on social security handouts. European Union governments have also been urged to reform network industries, financial markets and above all to strengthen the knowledge base.
The slight economic recovery on both sides of the Atlantic has not yet convinced investors.
Major stock markets on both sides of the Atlantic are in the doldrums. After two weeks of trading since the year started, European blue-chip stocks are down by nearly two per cent and analysts are not sure about future trends.
Hence, the view is that if the investors' perception of rapid profits are not met, there may be a further fallout in the stock markets.
E.C. officials have drawn up an "action plan" to boost economic growth, reduce unemployment and increase the pace of the economic reform process. The E.U. wants all barriers in the labour market to be removed by 2005 to ease the flow of labour.
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