EU Economy: New approach to European growth: Rehn summarises changes

Olli Rehn Commissioner Economic and Monetary Affairs and the Euro,

Reviewing the EU monetary union’s conditions and the general economic situation, Commissioner Olli Rehn described the existing challenges at the European Forum in Alpbach, Austria

Facing the crisis, there are numerous challenges for the EU and the member states: in the short term, the EU member states have to stabilise financial markets so as to avoid the free fall of their economy. In the medium term, the states need economic reforms for sustainable growth and job creation. And in the long term, both the states and the Commission have to redesign the architecture of EMU.

Creating the conditions for new growth has required consistency and determination – not least as it involves the unwinding of macroeconomic imbalances that had built up over many years.

Contrary to the doom-mongers' prophecies, the euro has not broken up. The latest economic indicators show that the EU economic strategy is starting to deliver.

But the road to new growth will continue to require difficult choices and persistence. The EU and the member states must continue reforming the European economic and social model. This model shall not be dismantled as it is based on the combination of stability culture, entrepreneurial drive and social justice.

The EU needs genuinely reformed and modernised social market economy, for the sake of sustainable growth and job creation.

“Taking Europe or the eurozone in isolation cannot work”, said the Commissioner. And added: “Our economic reality is global. Europe must develop a common perspective, in a global context. But this cannot be an excuse for any one stakeholder to not assume his or her individual responsibility”.

Read more: the Olli Rehn Speech