European Economic and Social Committee

PRESS RELEASE No 028/2007 / 19 April 2007

European Economic and Social Committee

Jean-Claude Juncker at the EESC ECO-Section:"19 Mio jobs created since the introduction of the Euro"

Following a bilateral meeting with EESC-President Dimitris Dimitriadis,Jean-Claude Juncker, Prime-Minister of Luxembourg and permanent President of the Eurogroup, addressed the ECO-Section of the EESC chaired by Giorgos Dassis on 19 April with a passionate speech on the success of the Euro. Critical voices raised in current debates would underestimate the dimension of the contribution that the very existence of the Euro made to the current positive economic situation. 19 Mio new jobs were created in the 8 years since the existence of the Euro, in comparison to 2 Mio in the 8 years before. And with an eye on the upcoming elections he emphasised that 2Mio new jobs were created in France alone.

Not only has the Euro protected countries in the Euro zone from currency turbulences and competitive devaluations that would have occurred otherwise given the severe shocks Europe has faced like the war on the Balkans, various financial crises throughout the world, energy supply shortages, etc. Even more, the stability effect of the Euro has reached over to the other Member States and even beyond the frontiers of the European Union.

However, even in the positive current economic climate core challenges remain. Structural reforms have to continue so higher non-inflationary growth is possible. Economic and budgetary coordination still needs to be reinforced in order to reap fully the benefits of the Economic and Monetary Union. And the representation of the Euro at international level needs to be improved to give the Euro its weight as an international currency that it deserves given the size of the economy it unites.

One important aspect in the discussion with Members wasrelated to thehigh value of the Euro, especially in relation to the US-Dollar. Mr. Juncker expressed his conviction that the Euro was not overvalued but that its exchange rate had gradually developed from a level that was very low. Concerning enlargement of the Eurozone,raised by several Members, he warned about a public discussion on changes to the Maastricht criteria, which would trigger adverse reactions on financial markets. And being asked about wage moderation he outlined that while wages have to develop in line with productivity so inflationary pressure is minimised, it would not be sustainable if the fruits of growth are distributed to few high-paid persons in executive positions. A debate on this question is necessary in the near future.

Being asked about his opinion on recent trends concerning the Constitution, he outlined that governments have to show more effort so negotiated texts are ratified subsequently. Concerning the discussions ahead in the near future, the core elements negotiated previously have to be preserved. However, it will probably not be wise to continue with the term Constitution. Given that the Convent did unfortunately not produce a text that was ratified; an intergovernmental conference would be an appropriate next step to advance the discussion in Europe.

The ECO section members very much welcomed Mr Juncker presentation and are looking forward to continue the dialogue.

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The European Economic and Social Committee represents the various economic and social components of organised civil society. It is an institutional consultative body established by the 1957 Treaty of Rome. Its consultative role enables its members, and hence the organisations they represent, to participate in the Community decision-making process. The Committee has 344 members, who are appointed by the Council of Ministers.