In advance of the informal European Council meeting on 30 January, AmCham EU identified five key measures it believes are urgently needed to put Europe back on a path of sustainable growth. The economic and financial crisis gripping Europe is entering a critical phase requiring bold action and strong leadership.

‘Austerity measures alone are not going to get Europe out of this crisis. We need to put in place mechanisms that are going to spur employment, encourage business investment and drive the necessary economic reforms to ensure Europe remains a player in the global economy’, stated Hendrik Bourgeois, Chair of AmCham EU.

AmCham EU is recommending the following five points to put Europe back on the right track:

• Quickly adopt and implement economic governance measures
  Europe needs to ensure fiscal responsibility and a smooth functioning of the economic and monetary union to keep the European economy from stagnating. The EU’s present economic governance structure has prevented a swift and coordinated response to the debt crisis. Quickly adopting the economic governance structure agreed in principle last December would help stabilise the European economy and provide credibility, stability and predictability for business invested in Europe. This is essential to generating growth and employment.

• Deepen and reinforce the Single Market
  The European Single Market is the foundation of European economic integration and further efforts should be made to improve the ease with which economic activity can take place across national borders, particularly in services. Completing the EU Single Market could increase Europe’s GDP by about four percent over the next decade and create many more jobs.

• Reform the labour market and better prepare workforce
  Europe needs to equip it workers with the right skills to build a competitive workforce. To achieve this, EU Member States need to augment their investments in training, education and lifelong learning, particularly with regard to young professionals. Labour market reform also needs to be appropriately addressed, including increased flexibility in labour market regulations, measures to improve cross border labour movement, reduction of the tax burden on labour and greater use of flexicurity.

• Boost innovation
  Research and innovation is central to achieving sustainable and smart growth. Increasing R&D investment in Europe to three percent of GDP could create close to four million new jobs and increase European GDP by almost €800 billion. Europe should continue to strengthen its innovation policies and continue significant public R&D funding support.

• Increase access to third country markets
  Open markets and global trade are central to any strategy designed to increase European employment and economic growth. The EU should improve trade relations with third countries, including the United States. AmCham EU supports the efforts of the EU-US High- level Working Group on Jobs and Growth to dramatically reduce tariff and non-tariff trade barriers and achieve greater regulatory harmonisation.