Excellencies, Ladies and Gentlemen
It is a great pleasure for me to open the 7th ASEM Finance Ministers Meeting here in Vienna. As Minister Grasser has already pointed out, this is a very special year for Austria, as we chair the Council of the European Union during the first half of 2006.
This ASEM Finance Ministers' Meeting is one of the highlights of the Austrian Presidency. Dealing with policy questions which are of overriding importance to all our countries it is certainly one of the most important meetings in the economic field during the first half of 2006. But it also serves as a key preparatory meeting for ASEM 6 in Finland in September. From first-hand experience I can tell you that the heads of states and governments have always appreciated the excellent preparation accomplished by the Finance Ministers.
The recent EU Spring Summit, which traditionally focuses on economic issues and which is among the main tasks for the EU Presidency during the first semester, resulted in notable progress on several important issues:
The discussion centered on the most pressing challenges to the EU, particularly on how to effectively promote growth and jobs. In Europe growth has been slow in recent years and unemployment remains stubbornly high. In the future, the ageing of the labor force will ease pressures on the job market (while creating other challenges); in the short to medium term this situation causes political and economic problems.
Unemployment is not only a problem for public finances – which it very much is – but also a problem for the cohesion of our societies with all the political risks that entails. Populist voices are quick to blame globalization as the root cause of all evil, ignoring the fact that international economic relations have always driven the European economies. What we are facing is a fundamental change brought about by technological progress. Change is the only constant in economy and the history books are full of examples of successful adaptation as well as decline as a result of failing to adapt.
This, of course, is not only a European phenomenon. The task of job creation, of social integration, is a task for all ASEM members. I am sure that your deliberations on globalization will also touch upon these aspects.
Economic, labor market and social modernization in Europe is both challenging and necessary. But we would fail if the economic and labor market reforms were not pursued with a view to maintain social justice; they are two sides of the same coin. The “European way of life” is Europe’s strength.
In just 50 years, Europeans have made war between Europeans unthinkable; European economies have closed the gap with the US; and Europe has brought successive waves of countries out of dictatorship and into democracy. Around the 450 million citizens of the EU, there are another 1.5 billion people who depend on an EU that is their biggest trading partner and their biggest source of credit, foreign investment and aid.
Europe’s power is easy to miss. It operates through traditional political structures. National law courts and civil servants are still there, but they are all implementing European law. This is no accident. Europe works by creating standards that are implemented through national institutions. With the largest single internal market in the world, Europe has become an economic giant.
But it is the quality of Europe’s economy that makes it a model. Europeans have shorter working hours and longer holidays than anyone else in the world. European societies have less inequality, which results in lower crime rates and smaller prison populations. Europe has a more effective balance among economic performance, social cohesiveness and environmental sustainability than any other model.
Common values underpin our social models: Solidarity and cohesion, equal opportunities, health and safety in the workplace, universal access to education and healthcare, quality of life and quality in work, sustainable development are shared values reflected in the EU treaties, its action and legislation. They are the foundations of our specific European approach to economic and social policies.
At the same time it is perfectly clear that today’s policies are challenged: Aging offers longer lives in better health; globalization creates opportunities for both consumers and business. Yet aging challenges the financial sustainability of current systems, and globalization challenges our ability to compete. But Europe is providing solutions to the challenges we face. The renewed Lisbon strategy describes the path to a modern Europe which delivers economic prosperity and social justice. European values underpin modernization in our economies and societies and give us the confidence to reap the benefits of globalization.
Europe's answer – restated during the European Spring Summit – is to concentrate on unleashing the forces of innovation, on investing in know-how, research, development and education and to upgrade its material and immaterial infrastructure so its enterprises and workforce can compete successfully with the best in the world. These measures are expected to bring about an increase in European employment of at least 2 million jobs yearly until 2010.
Another policy priority is to improve opportunities for Small and Medium-Sized Enterprises. While in the past a lot of policy attention was directed on large global enterprises, the bulk of employment and value added lies with the multitude of SMEs which often have a hard time with respect to access to capital, to know-how, to foreign markets. SMEs also suffer out-of-proportion from administrative barriers, bureaucratic procedures for applications, licenses, etc. Here a new effort was introduced to get rid of administrative barriers, to ease SME access to capital and know-how and to open them up to international business.
Occasioned by the high and volatile prices of fossil fuels and the recognition that Europe, as a net energy importer, is in a fragile situation with respect to the security of its energy supply, the European Council has – in close cooperation with the European Commission – launched a “European Energy Policy”.
The “European Energy Policy” is emphasizing security of supply, competitiveness and environmental sustainability. The European Commission will draw up an Energy Action Plan which should promote energy efficiency, energy savings, increase the share of renewable energy, but also investment in new pipelines and refineries. Such an Action Plan will also need to refer to demand-side conditions and management in the field of energy services.
While Asian and European ASEM countries are geographically far apart, their problems are similar and their solutions can benefit from discussions, from learning from each other, and from cooperation.
This is why the ASEM process is so important. The Austrian Presidency of the EU will do everything it can to promote cooperation between ASEM partners.
Let me welcome you once more to the beautiful city of Vienna. I do hope that you will also get a chance to visit some of the famous sights of the city during your stay here. But, first of all, let me wish you very successful discussions and deliberations.
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