EU needs to assist business climate: Harney

Flexibility and speed in business need to become integral to the decision-making process within the European Union, Mary Harney claimed today.

The Tánaiste repeated that lighter regulation of industry and business was needed if those companies operating in the intensely competitive global marketplace were to prosper.

Lower-cost economies in the Far East and the continuing productivity gap with the United States was putting increasing pressure on EU businesses and a speedier decision making process was needed to make sure that the gap didn't grow, she said.

Reference was made to the American state of California where well-meaning legislation over a period of 10 years transformed California from being the most successful state in the US to becoming number 49 out of 50.

Harney said today :"The message from business leaders to the EU was that outsourcing to the Far East is not the issue.

"We have got to concentrate on productivity growth and we have got to do business differently.

"Investment decisions will be influenced by the climate that exists in the European Union and particularly in the different member states, and we have been urged this morning to be light on regulation and supportive of innovation," she added.

The Tánaiste was addressing a lunchtime press conference at Dromoland Castle, Co Clare, following a round table discussion between the EU Competitiveness Council and leading US and European business leaders.