Europe Stuck in the Wrong Gear, say bosses

3 April 2006

Europe's leaders need to get serious about responding to international economic challenges, company leaders warned today. According to the Institute of Directors (IoD), the European Union's policy response to global competition shows a worrying lack of urgency.

The IoD was commenting after the European Commission's publication of a revised version of the draft Directive on Services in the Internal Market. The IoD continues to support the Directive, but regrets that it is not more ambitious.

The IoD's Director General, Miles Templeman, said:

"We support the Services Directive as a modest step forwards, but it could have done much more to boost competition and cross-border business. A huge amount now depends on the effectiveness of the one-stop-shop information services that the Directive will introduce. These must deliver what business needs - quick and accurate information about the rules that apply in every European market."

Failure to recognise the global challenges that Europe now faces is typified by the continuing saga of the Services Directive, the IoD claimed. The low-key outcome of the recent European economic summit and the protectionist response of key member states to cheap imports and international takeovers are also symptoms of the same problem.

Miles Templeman added:

"Europe cannot keep coasting along in second gear while our competitors are in overdrive This failure to grasp the nettle cannot be laid solely at the Commission's door. President Barroso and his team have been trying to make headway on issues such as Better Regulation. But we need every part of the EU, including the European Parliament and all national governments, to start pulling in the same direction. Europe needs to get serious about economic reform."