15 Jan 2014
UK's Osborne: EU will reform or decline
FXstreet.com (Łódź) - UK Chancellor George Osborne called for more economic and political reforms in the EU at an event organized by the think tank Open Europe on Wednesday. He suggested that the block was falling behind India and China as far as economic expansion is concerned and reforms were necessary to reverse that trend.
"The biggest economic risk facing Europe doesn't come from those who want reform and renegotiation," Osborne said."It comes from a failure to reform and renegotiate. It is the status quo which condemns the people of Europe to an ongoing economic crisis and continuing decline."
The Chancellor assured that changes were possible, giving the example of Britain's involvement in the negotiations on the EU budget last year, the moves made to deal with excessive red tape in Europe, the initiative to promote free trade with Canada, Singapore and Korea and the ongoing talks on the EU-US Free Trade agreement.
Apart from the competitiveness crisis, Osborne named excessive spending on welfare as one of the biggest problems for Europe. "Europe accounts for just over 7% of the world's population, 25% of its economy, and 50% of global social welfare spending,” he pointed out.
Finally, the Chancellor called for revising EU treaties, when these become inadequate: "The European Treaties are not fit for purpose. They didn't anticipate a European Union where some countries would pursue dramatically deeper integration than others. Instead of make-do-and-mend, we should make the Treaties fit for purpose."
"The biggest economic risk facing Europe doesn't come from those who want reform and renegotiation," Osborne said."It comes from a failure to reform and renegotiate. It is the status quo which condemns the people of Europe to an ongoing economic crisis and continuing decline."
The Chancellor assured that changes were possible, giving the example of Britain's involvement in the negotiations on the EU budget last year, the moves made to deal with excessive red tape in Europe, the initiative to promote free trade with Canada, Singapore and Korea and the ongoing talks on the EU-US Free Trade agreement.
Apart from the competitiveness crisis, Osborne named excessive spending on welfare as one of the biggest problems for Europe. "Europe accounts for just over 7% of the world's population, 25% of its economy, and 50% of global social welfare spending,” he pointed out.
Finally, the Chancellor called for revising EU treaties, when these become inadequate: "The European Treaties are not fit for purpose. They didn't anticipate a European Union where some countries would pursue dramatically deeper integration than others. Instead of make-do-and-mend, we should make the Treaties fit for purpose."