Reforms will 'get Europe working', argues Irish Minister for Finance
The current chair of the Economic and Financial Affairs (ECOFIN) Council, Irish Minister for Finance Charlie McCreevy, has said that further labour market reforms are needed to stimulate employment and increase competitiveness in the EU. Mr McCreevy was addressing a conference on enterprise hosted by the UK government in London on 26 January. Over the coming months, further economic reform in Europe would be a priority issue for the Irish Presidency in the Council of Ministers, he said. 'Unquestionably the biggest challenge we face is to boost employment and get Europe working,' argued Mr McCreevy, who added that the average EU level of unemployment in 2003 of over eight per cent had negative social and economic consequences. The minister pointed out that the EU has already set itself ambitious employment targets as part of the Lisbon strategy, but warned: 'The cold hard reality is that, as things stand, it is quite likely that these targets will not be met.' According to Mr McCreevy, what is urgently needed is swift implementation of comprehensive labour market reforms. Echoing a previous call by Commission President Romano Prodi for Member States to promote 'active aging', Mr McCreevy said that EU countries should introduce incentives for workers to retire later, and for employers to hire and retain older workers. As highlighted by the organisation for economic cooperation and development (OECD), Member States must also recognise the impact that different systems of taxation can have on employment and economic growth, the minister argued. Raising the minimum pension age and scrapping the compulsory retirement age would also have an effect. In conclusion, Mr McCreevy said that much had been achieved since the launch of the Lisbon strategy in 2000, but that key proposals on professional qualifications and intellectual property rights remained pending. 'Over the months, the Irish Presidency will seek to make progress in relation to a range of these important reforms,' he promised.