Dutch minister calls for move towards US social model

[Henk Vreekamp]

REPLY TO: D66 at nic.surfnet.nl

Inderdaad Henk,

Brinkhorst ontwikkelt zich versneld tot een dogmaticus. Iemand die iets 
nastreeft zonder zich nader te verklaren. Als zodanig past hij niet meer in 
de traditie van D66.

hv,u
------

At 12:18 8-10-04 +0200, you wrote:
>REPLY TO: D66 at nic.surfnet.nl
>
>Article >> http://euobserver.com/?aid=17474&rk=1
>
>"
>Dutch minister calls for move towards US social model
>
>07.10.2004 - 17:33 CET | By Richard Carter
>
>EUOBSERVER / BRUSSELS - The EU needs to move more towards
>the US social model if it is to close the productivity gap
>with America and reach its economic goals, the Dutch
>economics minister and Chairman of the EU's competitive
>council said today (7 October).
>
>Speaking at an event organised by the Lisbon Council - a
>Brussels-based pro-reform think tank - Laurens Jan
>Brinkhorst said, "I will argue that the updated European
>Social Model should differ distinctly from the current one.
>It will inevitably resemble the US model more than is the
>case today".
>
>However, Mr Brinkhorst continued, "But it will still be a
>European model, reflecting European preferences for social
>inclusion and environment".
>
>Mind the gap
>A shift in the European social model is vital if the EU
>stands any chance of fulfilling its self-set economic goal
>to be the most competitive economy in the world by 2010 -
>the Lisbon strategy - said the minister as he sketched out
>how far the EU has slipped behind the US.
>
>"Since the early 1990s", said Mr Brinkhorst, "the US has
>largely outpaced the EU in terms of economic growth. From
>1991 to 2003, the US economy grew by no less than 47 percent
>in total, whereas the EU economy achieved only 28 percent
>growth".
>
>He added, "With respect to the GDP [gross domestic product]
>per capita, Europe ranks significantly below the world's
>best performers. In 2003, America's GDP per capita was 55
>percent higher".
>
>"Only one member state - Luxembourg - could compete with
>most US states in terms of GDP per capita. The average
>person in France, Germany and Italy earns less than the
>average American in all but four of the US states (Arkansas,
>Montana, West Virginia and Mississippi)".
>
>And this issue is all the more pressing given Europe's
>ageing population, often described as the "demographic
>time-bomb".
>
>Work longer, Europe!
>One of the ways in which Europe can boost its productivity
>and growth, according to the Minister, is by working until a
>later age.
>
>Although people are living longer, many Europeans choose to
>retire before the official retirement age - which Mr
>Brinkhorst noted was introduced in the late 19th century.
>This reduces the productivity of older workers and increases
>pressure on pension systems.
>
>"We will simply have to work longer", said Mr Brinkhorst,
>calling for "incentives to seek work and work longer".
>
>He also called for more flexible labour markets, stimulating
>innovation, improving regulation and lowering taxes as a way
>to boost growth and productivity.
>
>No guts, no glory
>Despite the seemingly enormous gap to bridge with the US in
>terms of productivity growth, Mr Brinkhorst remains upbeat.
>There is "ample room for improvement", he said and "no need
>to think that our future will inevitably be gloomy".
>
>If all EU member states performed as well as the best EU
>member state in terms of the three main drivers of growth,
>the EU's GDP per capita would be 30 percent higher than the US.
>
>"But we do need to get into a higher gear and redirect the
>agenda to target enhancing economic growth, employment and
>competition", he concluded.
>
>And he stressed that the model he envisages will still be "a
>European model, reflecting our European choices".
>
>"Europe will still have a high level of social security, but
>not as high as it is now".
>
>© EUobserver.com 2004
>Printed from EUobserver.com 08.10.2004
>
>The information may be used for personal and non-commercial
>use only.
>
>This article and related links can be found at:
>http://euobserver.com/?aid=17474&sid=9
>"
>
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