The Business Climate in Europe’s Regions

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Transcript The Business Climate in Europe’s Regions

How do we handle the
economic crisis?
European and National Economic
Recovery Plans
CEBRE, 17 June 2009
Giovanni Campi, Senior Policy Advisor, EUROCHAMBRES
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Green = measures
included in NERP
Red = measures not
included in NERP
AT
BE
BG
CY
CZ
DK
ES
FI
FR
DE
GR
HU
NL
RO
SI
SE
UK
Employment
Demand for labour
Access to finance for
businesses
Reduce
administrative
burdens and promote
entrepreneurship
Investment in
infrastructures
Improve energy
efficiency in
buildings
Promote the take up
of ‘green products’
Increase investment
in R&D, innovation
and education
Develop clean
technologies for cars
and construction
High-speed internet
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1. European Chambers’ perspective…
• The European CCIs evaluation of their NERPs is generally
satisfactory/good (2.5 on a scale from 1 to 5)
• The majority of CCIs broadly supports the measures contained
in their NERPs, which seem to follow the EERP guidelines
• Taking the 10 ‘Actions for Recovery’ of the EERP as a
benchmark, all MS have announced actions in those fields:
-
employment
demand for labour
access to finance for businesses
investments in infrastructure
-
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1. European Chambers’ perspective (ii)
• European CCIs noticed that actions at national level are much
less intense in the following fields:
-
energy efficiency
green products
clean technologies
investments in R&D, innovation and education
• Over half of respondent CCIs noticed that measures for green
technologies/ products have not been taken in their countries
• Many CCIs asked for measures in the following fields:
-
More guarantee schemes for SMEs
Measures to facilitate access to credit (particularly CEE)
More resources for training, education and flexicurity
Actions to help with late payments
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2. What about the G20 countries?…
• On average, the magnitude of the NERPs of the G20 countries is
between 1% and 2% of GDP:
 Around 0.5% or less: Argentina, Australia, Brazil
 Over 2%: China and Canada
• The majority of G20 CCIs broadly agrees with the measures included
in their NERPs;
• G20 CCIs deplore general one-off rebates or actions which do not
have at least a short or medium-term perspective (e.g. tax reductions
in several countries)
-
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2. What about the G20 countries? (ii)
• Number of measures included in the G20 NERPs (in this order):







Investment in infrastructure
Access to finance measures
Employment measures
Actions to reduce administrative burdens
Increased investment in R&D
Demand for labour
Clean technologies
 In some of the G20 emerging economies the NERPs are way less
developed (both in magnitude and measures included) compared to
most of the developed economies. But, the focus is very similar.
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3. Policy elements…
• Measures to sustain short-term aggregate demand and
employment BUT not enough competitivenessoriented/medium-term measures
• NERPs fail to implement structural actions related to taxation,
social charges and the public administration which would prove
instrumental to increase productivity and economic resilience
• Not much ‘smart’/green growth measures
• Size of the EERP/NERPs does not matter too much, the type of
measures included and their implementation do!
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3. Policy elements (ii)
• Stabilization of the financial system and provision of affordable
credit to the real economy not yet attained (ECB bank lending
survey, ECB financial stability report etc)
• No or only partial interconnection with the SBA measures
• Lack of coordination with legislative ad policy actions which are
not directly part of the recovery packages but which benefit the
Internal Market
• Larger divergences in EU countries’ economic performance in
the future
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4. Priorities
Today…
•
•
•
•
Stabilization of the financial system  Access to finance
Late payments;
Safeguard and deepen the Internal Market
Revise plans with priorities more in line with structural
improvements and implementation
Tomorrow…
• Public finances and SGP
• Reduce skills mismatch and enhance labour mobility
• Stronger fiscal coordination in the euro-area
 How to allocate EU resources  EU budget review (but, as for
now, that’s another story…)
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