UNICE casts doubt on Lisbon strategy

THE EU’s strategy for making Europe the most competitive economy in the world by 2010 is in trouble according to the Union’s largest business organisation.

All reports show that the harsh truth is that member states are a long way from reaching goals they set four years ago, according to the Union of Industrial and Employers' Confederations of Europe (UNICE).

They issued their own assessment yesterday ahead of Thursday's Competitiveness Council meeting of what needs to be done to try to catch up with the so-called Lisbon Strategy to increase jobs and wealth in the EU.

They demanded better regulation because they say over-regulation is killing business. According to last year's Annual Global CEO Survey, chief executives in Europe fear over-regulation more than they do terrorism, said Arthur Forbes, IBEC's representative in UNICE.

Regulation now costs European business up to 6% of GDP and according to the IMF better regulation could improve European productivity by as much as 3%. UNICE said 592 environmental laws were introduced by Brussels from 1990-2000.

Reform is needed in cutting red tape for those wishing to start up a business, said UNICE.

This takes 45 days on average in the EU and up to 111 days in some countries, compared to just four in Denmark and the US.

Other areas in which they believe reform is vital are social protection, labour market regulations, stimulating research and development and the internal market where they say countries must adopt EU legislation more quickly and improve trans-European networks.

On the issue of rail networks, UNICE, pointed out that the average speed of freight trains is 18 km per hour the same speed as a bicycle.

UNICE called on the EU to revisit the Union's climate change policy as they believe Russia will not ratify the Kyoto Protocol, leaving Europe's industry having to carry costs not being carried by competitors in Russian and the US.