Kathimerini

Jose-Maria Aznar, who has been prime minister of Spain for the past six years, believes that Europe can solve its problems by adopting greater liberalization in order to be more competitive vis-a-vis the United States.

In an interview with Kathimerini and four other European newspapers, Aznar, whose country currently holds the presidency of the European union, spoke of the “Spanish model,” saying that Europe had to take risks in order to achieve success.

“We should dare to go ahead and reduce taxes, keep trying to achieve zero deficits, reform labor relations and try to resolve the pensions problem. The key is to move from the tradition of subsidies to a policy of boosting growth and employment,” he said.


“If the EU member states don't introduce major changes in their economic and social models, then over the next decade the Americans will be in the stratosphere and we will be watching them from the ground,” Aznar commented. “Throughout the 1990s, Europe's growth rates were below 3 percent, far lower than in the USA, so the gap has widened. There is a clear danger that it will widen even further in terms of economic growth, competitiveness and employment. At the Barcelona summit, we took important decisions, particularly with regard to deregulating the energy market for major consumers, but the greatest challenges are still ahead,” he said.

Aznar said he was not proposing radical changes but rather that Europe look at how it can boost growth and employment.

“The greatest risk is to do nothing out of fear of taking risks. I firmly believe that if a reform is based on common sense, if it responds to society's real needs and is explained properly, it is sure to succeed,” he said. “Experience over the past 10 years has shown that EU members that have adjusted better to the needs of the new age are also those that have performed better regarding growth and employment... Those states that have delayed adopting changes are those that have been losing ground.”