Unleashing growth and jobs in Europe

I gave a speech yesterday in Brussels at a summit on unleashing growth and jobs which was organised by the Lisbon Council, a think tank.

There is no doubt that Europe faces a major crisis. The current difficulties in the Eurozone are having a chilling effect on all our economies. However, I would argue that rumbling beneath the surface of this crisis is a bigger and more important challenge to Europe. How we position ourselves in a changing world to ensure we can remain competitive as economic power shifts from West to East and from North to South.

Europe has many great strengths – the world’s largest single market, an open and outward-facing approach to trade and millions of well educated and innovative people. However, we cannot take those advantages for granted – others can and are developing them too.

The Prime Minister, David Cameron, sent a letter last week along with 11 other European leaders setting out what we think Europe needs to do to develop those strengths and remain globally competitive. We need to improve the market in services, build a proper single market for digital goods, reduce the burden of regulation, and agree trade deals with the fastest growing parts of the world. We should also build a robust, dynamic and competitive financial services sector that can support growth in the rest of the economy.

Of those who signed the letter five are from countries outside the euro area, seven are from those in it. Together they represent over half the population of the EU. I am pleased that Italian Prime Minister, Mario Monti, also signed the letter. The UK and Italy increasingly find that we share the same approach to achieving growth in Europe.