EESC Tackles Ways to Rebuilt Social Market Economy in Europe

Business | January 26, 2009, Monday // 00:00
EESC Debates Ways to Rebuilt Social Market Economy in Europe: EESC Tackles Ways to Rebuilt Social Market Economy in Europe Mario Sepi, President of EESC. Photo by EESC

The European Economic and Social Committee (EESC) organized a conference entitled "Rien ne va plus? Ways to rebuild the European Social Market Economy" focused on the present international financial situation and the risks to European economies, the Sofia News Agency reports.

The conference was held on January 22 and 23 in Brussels as part of a series of such debates to identify concrete measures to end the crisis and to involve representatives of the civil society and all those concerned with the current situation - European institutions, the financial sector, economy experts.

The conference was introduced by a press conference for journalists with Mario Sepi, President of the EESC, John Monks, Secretary General of the European Trade Union Confederation (ETUC), Andrea Benassi, Social Partner, Small and Medium-Sized Enterprises (UEAPME),and Pervenche Beres, President of the ECON committee of the European Parliament.

The four speakers presented the key objectives of the event: discussing measures for a quick relaunch of the economy in order to avoid recession and other consequences for workers, on one side, and finding out ways to redefine an efficient financial market regulation, on the other side.

During the conference the issues were also addressed by Gertrude Tumpel Gugerell, Member of the Executive Board of the European Central Bank (ECB), Marco Buti, Director General, DG ECFIN, European Commission, David Wright, Director General, DG MARKT, European Commission, Philippe De Buck, Secretary-General Businesseurope, Jean Pisany-Ferry, Bruegel Institute, Petra Erler, Head of Commissioner Verheugen's private office, European Commission, Chris De Noose, Secretary General, European Savings Banks Group (ESBG), Marc Stocker, Director, BUSINESSEUROPE, Umberto Triulzi, Professor, University of Rome, Daniel Gros, Director, Centre for European Policy Studies, Peter Praeft, Director National Bank of Belgium), Umberto Burani, Rapporteur for an opinion on financial markets (planned), EESC, Gilbert Rebeyrole, President, National Federation of SOCAMA; Vice-President, European Association of Mutual Guarantee Societies (AECM), Agnes Jongertus, President of Federatie Nationale Vakbonden (Trade Union), Netherlands, Ieke Van Den Burg, Member of European Parliament, Susanna Florio, EESC, Rapporteur for Integrated Report on the Lisbon Strategy

In his address at the conference's opening, the EESC President Mario Sepi pointed out that the era when financial markets were functioning without any restrictions and control was over and that today we must define a qualitative system, transparent and well regulated, based on the European social model. Sepi further addressed the need to establish new ethics in the banking sector.

Participants in the first discussion panel stressed the urgency of restoring short and long-term investments in order to give the much needed push to the European economy.

Philippe De Buck talked about the necessity to expand the role of Europe in global financial supervision. Professor Umberto Triulzi, pointed out that speculative short-term investments were the culprit that put the real economy in danger by their speedy development, 20 times faster than the normal one.

John Monks stated that he was alarmed by the fact that European banks have halted all landing while, in the mean time, there was a pressing need to support purchasing power and invest in a new social deal.

Many participants spoke about the EUR, the European social model and the common European market as tools that have helped Europe in the difficult process of trying to eliminate the consequences of the global financial crisis. Participants further appealed to the European Union to address the crisis as one single European voice, with one strategy and a unified project.

Pervenche BerГЁs spoke against the current lack of real European coordination and asked for urgent political intervention to establish such coordination while Andrea Benassi pointed out the need to help not only the big industry but small and medium-sized enterprises (SMEs) since they were the strong foundation of the European economy. Benassi said that SMEs have managed so far to avoid major trouble, but would soon begin suffering the effects of the crisis and expressed especially deep concern about SMEs that are subcontractors in the construction and the car making sectors.

All participants unanimous agreed on the need to support demand, keep jobs, invest in human capital by offering workers training and improving their skills, invest in research and innovations, define new rules for the financial markets.

The request for new financial rules and a single controlling and monitoring financial institution for Europe was addressed in person to Gertrude Tumpel-Gugerell from the European Central Bank. Several participants declared that ECB could play such role.

During the second day of discussions, Daniel Gros voiced the idea that the lack of sound control and monitoring on European level was the result of a mistake committed at the very beginning of the establishment of the European monetary union.

Gilbert Rebeyrole asked for a revision of the legal framework as a tool to help Europe to deal with the crisis.

Participants commended EESC for its fundamental role as a forum for debates between the representatives of the civil society and social partners.

The EESC President Mario Sepi said in his closing speech that two major elements have marked the conference: the need for banks to transfer the benefits of the interest rate cuts to enterprises and consumers on one side, and the need of strong coordination and supervision, of new legislation on European level to address the business, the society, families, consumers and all those that have suffered and continue to suffer the negative effects of the financial crisis.

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Tags: Global Financial Crisis

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