the question addressed to the commission actually implies the diagnosis of the real state of the economy in europe as well as the prescription
i can share to some extent both the diagnosis and the prescription
yes we are in a europe of austerity meaning socially painful savings politically costly and economically necessary but challenging to some extent for the very fragile recovery of the european economy
the european commission is a strong supporter of fiscal consolidation as a precondition for sustainable growth but we are more than ever conscious of the sensitivity of the economic debate now being discussed as the relaunch versus austerity problem and this was discussed even today in the college
when you take the long run and when you read the twenty twenty strategy this is clear as it is with the relaunch of the single market strategy but this is about the unlocking of the potential of the european economy
the european budget should be the answer right now as we need growth and jobs right now
this is because of the specific nature of the european budget with its focus on investment
the national budgets are mainly about social transfers the european budget is mainly about investment and therefore could have a multiplying effect on jobs and growth and when we see the proposal for twenty twelve what is growing with competitiveness is cohesion that is structural funding and research and development the other category of growing expenses is on migration
so this type of expenditure is conducive to growth and jobs
in the long run the same should be valid for the proposal we are to reveal at the end of june for the next financial perspective adding a lot on top of what i have mentioned relating to the energy and trans-european infrastructure generally that is also conducive to growth and jobs
therefore i can say that the european budget due to its nature could be the delivery mechanism in a time of austerity to replace the investment cut normally at the national level
therefore we should exploit this potential of the european budget to its limits
