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Investments needed for sustainable growth
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At the MEDPOL meeting today, CEEP General Secretary, Valeria Ronzitti, emphasised the need for investments in order to reach sustainable growth. Ms Ronzitti highlighted in particular the need for long-term investments in physical and social infrastructures. “There is a real business case for a steady and stable employment within public services of adequate size. Stable public services serve as an anti-cyclical macroeconomic buffer and stabilize aggregate demand and economic performance”.
On this point she also underlined the importance of high-quality public services for positive investment climate and for the general competitiveness of Europe. Ms Ronzitti continued: “This is something CEEP has been repeating since the beginning of the crisis. We are becoming pedantic but it is unfortunately necessary to keep repeating the message because the policy of “easy cuts” is persisting in too many Members States. We are in favour and want to be in the lead of eliminating inefficiencies in public services but modernisation is not synonym of radiation, unless you want to put the European Social Model under serious threat.”
Finally, Ms Ronzitti highlighted the business case for green investments because of the employment growth potential offered by green jobs and also for boosting demand. “Public services’ providers can play a part as buyers and users of new green products, green services, technologies and methods. If public services take the lead in demand, it will boost the possibility of an increased demand from other sectors and branches, which will have a positive effect on prices and make green alternatives a realistic and viable option. There are opportunities for business growth in these areas and there is a role for the Commission to provide investment incentives” concluded Ms Ronzitti.