Barroso seeks EU economic boost

By Angus Roxburgh
BBC, Brussels

Manuel Barroso made few promises this time

The President of the European Commission, Jose Manuel Barroso, has presented a five-year policy strategy to the European Parliament in Brussels.

He said it was time to unleash Europe's enormous, untapped potential, and called for policies which would bring economic growth and create more jobs.

Mr Barroso's address, entitled Partnership for European Renewal, contained few specifics and a great many generalities about bringing Europe closer to its citizens, more prosperity and turning words into action.

Five years ago, the European Union pledged to turn itself into the world's most competitive and dynamic economy in 10 years - but it is lagging far behind this objective, and Mr Barroso avoided making such promises.

Warnings

Pre-empting criticism from left-wingers, he argued that so-called "liberal" policies of fostering economic growth and creating jobs were essential to narrow social disparities and protect the environment.

And in a challenge to some member states which wish to reduce their contributions to the EU budget, he argued that the union's objectives could only be reached if it had the means to do so.

You must understand that European social democrats will never accept any decline in the European Union's social standards Martin Schulz, Socialist group

"One can't have more Europe with less money," he said.

Most MEPs welcomed Mr Barroso's plans, but there were words of warning from the socialists and greens.

Speaking for the Socialist Group, Martin Schulz said the commission president had shown himself capable of listening to "the progressive proposals" of the Socialist Group and others.

But he warned: "Whilst we give a cautious welcome to the balance you have struck on the Lisbon strategy for jobs and growth [agreed in 2000], you must understand that European social democrats will never accept any decline in the European Union's social standards. That is simply not an option."

Budget battleSpeaking later to a small group of journalists, Britain's commissioner, Peter Mandelson, said it was not a question of choosing between either economic growth or social cohesion or environmental protection. Economic growth, he said, was the foundation for the other two.

Mr Mandelson went out of his way to stress that the Barroso Commission differed from its predecessor, led by the Italian Romano Prodi.

He said Mr Barroso's speech was less a "grand vision" and more a case of concentrating on success and on delivering results.

"Instead of a work programme like an encyclopaedia, only half of which gets done, [Barroso wants to] make it leaner, but more likely to get done."

A battle clearly lies ahead with national governments over the size of budget contributions in future, with some of the EU's major paymasters, including the UK, calling for a reduction in spending.

Mr Barroso indicated he would fight to keep spending at current levels, although used more effectively.

Under the current budget, which runs until 2006, the commission can use up to 1.24 % of member states' GDP for EU policies. The UK, France, Germany, Austria, Sweden and the Netherlands want to reduce this to 1%.