Callanan to Monti: If you champion economic liberalisation across Europe, we will support you
Posted, February 15, 2012 @ 16:00
In a debate with Italian Prime Minister Mario Monti in the European Parliament, European Conservatives and Reformists group chairman Martin Callanan MEP, said that the greatest problem facing the EU was a focus on harmonisation rather than liberalisation and competition. He told Professor Monti that he should use the current window to introduce liberal reforms, and to champion increased competition within the EU Single Market.
He said: "Although the news is gloomy, there are reasons for Italy to be optimistic. Italy is not Greece. Nevertheless, the national current account has been mismanaged - going from a healthy surplus to a near-crippling deficit in merely a decade.
"It appears - so far - that the markets respect your leadership, Prime Minister. Ten-year bond yields are almost at a manageable position: thanks partly to your proposed economic reforms and partly to the actions of the ECB which have bought you some time.
"Fiscal consolidation will ease the current crisis but, in isolation, it is not the long-term solution to our economic weakness. The answer is growth.
"We have no shortage of policy statements calling for growth and jobs. But let's be honest. So far, they have failed - because they focus more on buzzwords and gestures aimed at keeping everyone happy, and they are based on the premise that somehow politicians can create jobs.
"In my view, the greatest problem that we face in Europe is that competition has been undermined by the focus on harmonisation instead of liberalisation. The Single Market has the ability to deliver more liberal and flexible economies across the EU. The answer is not more harmonisation, not more rules and red tape, not 'more Europe'. The answer is a 'better' Europe, a Europe of liberalisation and competition.
"Professor Monti, as Prime Minister of Italy you have a great opportunity to articulate this vision, to champion economic restructuring and liberalisation - not just in Italy, but across Europe. If you succeed, my group will be the first to applaud you."