Business Europe, the Confederation of European Business, has launched a comprehensive five-year post-crisis agenda for the European Union themed "Go for Growth" which aims to inspire political decisions within the bloc as it emerges from recession.
The document was presented yesterday by the Malta Chamber of Commerce, Enterprise and Industry, one of 40 key industrial and employers' federations from 34 countries which make up Business Europe's members.
Chamber president Helga Ellul described Go for Growth as a strong, positive message to EU policy-makers on the work of the new institutions under the Lisbon Treaty rules. While many of the principles laid out in the document are not entirely new, the agenda outlines the right tools, advice and round map to stimulate Europe's - and Malta's - return to prosperity. Go for Growth will be an invaluable instrument for social dialogue, she said.
Mrs Ellul said the cost of Malta's economic contraction had been borne by corporate profits rather than by employment, and the recession in Malta had been contained by the absence of a credit squeeze. However, a decline in profitability had resulted in less investment; although Maltese business confidence paralleled that across Europe - and was even stronger in some sectors- it was still very fragile. The Chamber president emphasised Malta needed to increasingly foster knowledge-driven business, ensure the public service became more efficient, direct particular focus on key sectors, and continue to work with social partners on already identified key policy areas for growth.
The Malta Chamber will continue to advocate the increase of labour cost competitiveness particularly for labour-intensive sectors, the introduction of family friendly measures with a flexicurity approach, strategic planning for specific areas, and greater awareness of the availability of EU funding to businesses of all sizes.
Business, Mrs Ellul emphasised, must strive harder to influence decision-making. The business community needed to be more proactive and not rely solely on the government to lead the way.
Business Europe, which represents more than 20 million small, medium and large companies, believes the best way to strengthen the economy is to revisit the fundamental values of the market economy.
The implementation of principles like rewarding work and productive investments, encouraging reasonable risk-taking, ensuring transparency on market value, banning distortions of competition, fighting protectionism and financing affordable public services and social security, is essential for Europeans to prosper.
The confederation believes growth and employment will be achieved in Europe if decision-makers place the development of companies at the core of their policies, completely revitalise the single market and strengthen the bloc's position on the global stage.
The document emphasised companies which are able to operate within a business-friendly environment are successful in producing high-quality goods and services, creating jobs and developing new technologies. Successful companies, in turn, create the necessary wealth to finance public services and social security.
The European Commission, Business Europe stressed, must make it a priority for the union to develop a truly integrated industrial policy.
Go for Growth underlines five key challenges which Europe must meet if it is to be successful in a new and completely different business scenario. Europe must emerge from the crisis, tackle demographic aging, fight climate change, ensure access to energy and raw materials, and strengthen its role in the global economy.
Business Europe highlights the four major conditions for recovery: stabilise financial markets, return to sound finances, speed up structural reforms and keeping markets open.
Business opportunities will be driven by key factors like the revitalisation of the single market, the endorsement of an ambitious international trade policy and serious support for innovation, research and education.
The outlook for employment in Europe has become bleak. Despite more than 15 million new jobs created in the EU between 2004 and 2008, as many as seven million could be lost by the end of 2010.
Business Europe stresses the promotion of job creation and the increase in the supply of skilled workers as ingredients to boost employment.