Toespraak José Manuel Barroso over het Europese antwoord op de financiële crisis (en)

Inauguration of new Faculty building of the Bocconi University

Milan, 31 October 2008

Presidente Napolitano,

Presidente Monti,

Illustri ospiti,

Signore e Signori,

But let me turn to the financial crisis, and its effect on the real economy. After all, many of you sitting here today must be wondering what impact it will have on you, and what the European Union is doing to mitigate its effects.

Well, the first priority of the European Commission was to play its part in the rescue of financial institutions in difficulty, and ensure a tightly co-ordinated European response. After a few early wobbles, I think you will agree that what the world witnessed was unprecedented co-ordination in response to an unprecedented challenge.

Next – because speed was essential – the European Commission accelerated work to bring forward a package of precise, targeted measures to address specific shortcomings on capital requirements, deposit guarantees and accountancy rules.

Now we must look at what other measures are needed to fill the holes in today's regulatory regime. Already next month there will be proposals to tighten up the regulation of credit rating agencies. We will also come forward with an initiative on executive pay. We will look at regulating derivatives, hedge funds and private equity. A high level group I have set up under Jacques de Larosière, to look at cross-border financial supervision in Europe, will present its first results in time for the Spring European Council.

But the greatest challenge will be reforming the global financial system. Clearly, the last few months have shown just how interdependent we have become. Recognising that we swim together or sink together, we met the challenge with an unprecedented degree of international co-operation. The institutional framework for global governance – including the Bretton Woods institutions – will now have to evolve in order to provide a proper underlying framework.

The EU and the US, which together account for 80% of wholesale financial markets, will be central to this. But they are not enough. We need a critical mass of players involved, and that, as I made clear at the ASEM Summit in Beijing last week, must include China and India.

As the impact of the financial crisis on the real economy becomes clearer by the day, we must also turn our attention to what may become a serious economic slowdown. Already that impact is being felt in terms of jobs, household incomes and business order books.

One thing is clear: there is no national 'autostrada' out of this crisis – our economies are too inter-connected. And protectionism is no solution either – as Bocconi University, with its long tradition of teaching the value of open markets and open societies, knows only too well.

There are political forces at work that are trying to use the crisis to turn the clock back. To question open societies. To impose failed recipes based on failed ideas. So I want to be quite clear: the solution will not be found by looking backwards, it will be found by looking forwards.

We must not turn our backs on the opportunities of globalisation, which remain the best way of lifting millions out of poverty and raising living standards across the world. Nor must we put the single market at risk. This means upholding competition and state aid rules. It is certainly possible to do it in an intelligent and pragmatic way while at the same time respecting the fundamental principles of the single market.

That said, Europe's economy does need a boost to recover, to continue to grow and create jobs. And so, building on the Lisbon Strategy for Growth and Jobs, we will redouble our efforts to address long-term issues. We will move Europe further along the road to a knowledge economy by investing more in research, development and innovation.

The Small Business Act adopted by the Commission in June will help us take decisive action in favour of SMEs. And the decision by the European Investment Bank to mobilise €30 billion to support SMEs should also be of great benefit.

Pressing forward with investment in low-carbon technologies and energy efficiency measures – far from being an added burden or cost – will support our competitiveness, our energy security and our climate change agenda.

Trade has always been crucial to Europe's growth since its earliest days – as Roman coins in India, some dating to the second century BC, attest. So now is the time to be proactive about market access, to make the case that trade barriers are counterproductive.

The common thread through all this activity is the interests of European citizens. But there are more specific actions we can take for them as well.

At a time of rising unemployment, it is vital that we maintain investment in training, develop new skills and prepare people to take advantage of the opportunities when they return. We will review the role that the Globalisation Adjustment Fund can play, and press ahead with our Social Agenda for Access Opportunities and Solidarity.

In all these areas we have to be smart. We have to make the most of every action we take, and be careful not to throw away all our achievements over recent years in a panicked dash for short-term and ill-conceived measures.

So let's use state aid where necessary, but according to the guidelines directing state aid towards environmental support and research and development. Let's help key industries like automobiles, but help prepare them for tomorrow's market for clean cars. Let's help the construction industry, by promoting energy-efficient housing stock.

Smart support. That's what our industry needs. Not protectionism. After all, Europe's underlying strength has not changed. We still have our entrepreneurs. Our human capital. Our know-how. Our cutting edge technology. Our forward-looking policies. Our young people.

Signore e Signori,

L'Europa è in una fase critica. I casi sono due: o buttiamo via quanto realizzato negli ultimi 50 anni in una corsa affannosa ad interventi unilaterali e fonte di divisioni, o restiamo uniti e ci serviamo di questa crisi per arrivare a una maggiore integrazione.

In tale contesto, è più che mai fondamentale risolvere la "questione istituzionale" dell'Unione. In occasione del mio incontro con i capi di Stato e di governo al Consiglio europeo di due settimane fa, è stato ribadito chiaramente il nostro impegno inequivocabile a trovare una via per la ratifica del trattato di Lisbona.

L'Italia ha già dimostrato, come spesso in passato, il suo impegno a favore dell'integrazione europea. Lo ha fatto in modo più che eloquente lo scorso luglio, quando la Camera dei Deputati ha approvato all'unanimità la ratifica del trattato di Lisbona.

Nel frattempo, l'Europa deve dimostrare ai suoi cittadini che essa contribuisce a risolvere questa crisi finanziaria. Deve dimostrare che essa è la prima fonte di nuove riflessioni e di nuove idee per affrontare le problematiche che più li riguardano, come l'occupazione, i cambiamenti climatici e la sicurezza energetica.

Mi auguro che l'Università Bocconi si unirà a noi alimentando queste idee.

Grazie.