Chancellor Merkel at Davos: Reduce Debt and Increase Competitiveness
(© World Economic Forum: (Please note that Chancellor Merkel's Address starts 27 minutes and 19 seconds (27:19) into the video.))
Reducing state debt, heightening competitiveness and creating harmoniously functioning political structures – these are the lessons gleaned from the financial crisis. For that, more, not less, Europe is necessary. With this assertion German Chancellor Angela Merkel opened this year's World Economic Forum in Davos.
A fundamental rethinking is now what is asked, according to the Chancellor. Then Europe can regain global trust and compete effectively on the world stage.
Let reforms take effect
Enlarge image
Chancellor Merkel opens the World Economic Forum's 2012 Annual Meeting in Davos, Switzerland.
(© picture alliance / dpa )
There is already much movement in Ireland, Portugal and, to a certain degree, in Greece. “We need to be patient enough to let reforms take effect,” the chancellor reminded her audience. The twin euro-zone bailout funds, the European Financial Stability Facility (EFSF) with its 770 billion euros and the European Stability Mechanism (ESM) containing 500 billion euros, were devised to be sufficient. It would be false to believe that one could, by continually issuing new claims, “increase credibility.”
Who is best at what?
The special EU summit scheduled for January 30 in Brussels will center around growth and jobs. “Which countries have the best experiences with labor law? Where do we still have additional EU funds to help small- and middle-sized businesses? What are the most effective measures to combat youth unemployment?” These are questions which remain open and on the table, said the Chancellor.
Europe is growing together
Imbalance on the continent would have to be dismantled. This, however, cannot come at competitiveness's expense. After all, it is really about “producing prosperity in Europe.” Europe has gone far with the fiscal union . “However, we have to get faster,” stated Chancellor Merkel. That Europe is growing together during the crisis – this is the joyous part, according to the Chancellor.
