Meeting in Brussels on 17 February, for the OECD seminar on “The Euro Area at a Crossroads: Policies for Growth, Jobs and Competitiveness”, finance ministers, from some of the EU countries hit hardest by the crisis, discussed what actions are needed to ensure a more dynamic Euro Area in the years ahead, taking into account that despite the ongoing efforts to emerge from the global economic and financial crisis, important policy challenges remain.
Angel Gurría, OECD Secretary-General, explained that despite a better economic situation, youth unemployment rates are tremendous. Therefore, boosting the productivity and restore competitiveness is vital. There are still barriers to competition. There is a need for structural reforms in order to achieve a balanced and sustained recovery.
Jeroen Dijsselbloem, Minister of Finance of the Netherlands, highlighted the need for structural reforms and flexible governmental systems with a key focus on education. Public sector reform, workforce skills, investments in Research & Development are key targets. He also stressed that spill over effects threaten the Eurozone. Services’ markets and protected professions, from a political perspective are difficult to tackle!! So, the development of a banking union could be an example for other sectors. Maria Luís Albuquerque, Minister of State and Finance of Portugal, expressed the need for continuous efforts as key for success, while Luis de Guindos, Minister of Economy and Competitiveness of Spain, explained that emerging markets are essential. But we cannot compare apples with pears!
However, in all this debate health was not at all addressed, nor inequalities! But reference was made to the ‘protected sector’. Only Jeroen Dijsselbloem mentioned the modernisation of healthcare and the education sector. The welfare system is important to be maintained. It is clear from Jeroen Dijsselbloem intervention that, as the Eurozone president, he will protect and modernise the welfare state, including the healthcare sector.
Finally, it was concluded that flexibility is needed. Reference was made to Finland and Sweden, and IKEA explained why they are not able to open factories in some countries, and why regulation sometimes stops investment. The Portuguese Minister mentioned that skilled professionals are key, as well as export is key for investment. Ireland has attracted companies and stability in tax system and certainty is key for investment. A pool of educated people, productivity and competitiveness are essential.