Barroso pledges EU ‘growth initiative’

Commission president says there is growing support from EU leaders for pro-growth strategies.

José Manuel Barroso, the president of the European Commission, today promised a “growth initiative” to balance the European Union’s fiscal consolidation with measures to stimulate economic growth.

Speaking in Brussels after a meeting of the college of European commissioners today (16 May), Barroso said that national government leaders will discuss the initiative at an informal summit next Wednesday evening. Formal proposals would be presented at the regular June summit of heads of state and government.

Barroso said that the Commission will “push” on proposals that it has already put forward – for project bonds, an increase in the lending capacity of the European Investment Bank (EIB), and better use of the EU’s structural funds to promote growth.

He said that he had discussed the EIB’s role with Werner Hoyer, the bank’s new president, yesterday, and that they would propose using EU structural funds as collateral for EIB lending to countries in difficulty.

‘Ideas gaining ground’

“These ideas are gaining ground among European leaders,” Barroso said. “Now we need decisions.”

Barroso said that the proposals would build upon, but go beyond, the Europe 2020 strategy. Some of the strategy’s measures will be “accelerated”, he said.

He said that the updating of the EU’s single market act would also help address imbalances between European economies.

Figures published yesterday showed that first-quarter growth in the eurozone was flat.

‘Intelligent’ growth

Barroso said that the college of commissioners agreed to “apply the stability and growth pact intelligently” and to “use its inbuilt flexibilities”. The Commission will make country-specific recommendations on 30 May.

“Stability and growth go together, they are two sides of the same coin,” Barroso said.

Barroso said that there was no alternative to Greece’s bail-out programme and no space to renegotiate its provisions, but that it could be complemented by growth measures. “There is no way of changing the commitments taken by Greece,” he said.

He said that no alternative to the austerity programme offered less pain or better access to finance.

Greek election

He said that Greek voters had to take in the full picture before casting their votes in a general election next month. The date of the new elections were called today for 17 June. A general election on 6 June proved inconclusive and yesterday party leaders failed to agree a national-unity government.

Barroso said that he had spoken by phone with François Hollande, France’s new president, this morning, and they had discussed the situation in Greece.