Bush’s envoy targets financial services as key to global growth

Date: 17/01/02

By Craig Winneker

THE EU must redouble its economic reform efforts if it is to capitalise on the success of the euro changeover and stimulate growth on both sides of the Atlantic, Washington's envoy to Brussels said this week.

In his first major speech since becoming US ambassador to the EU, Rockwell Schnabel said the single currency was a good start but called on Europe's leaders to make more progress in such key areas as telecommunications, take-over rules, single European sky, pension reform, the Community patent and trans-European networks.

'The euro success is already old news,' Schnabel said. 'Markets, consumers and voters are going to ask: what have you done for me today?'

He claimed the Lisbon process - named after the March 2000 summit at which EU leaders promised to make the Union the world's most dynamic, competitive, sustainable knowledge-based economy - was critical for boosting global growth.

A venture capitalist and investment analyst by trade, Schnabel focused much of his speech to the Centre for European Policy Studies on the need for overhaul of the EU's financial services sector.

'Stronger growth and especially greater innovation will depend a large part on the extent to which the economy has greater access to capital and a greater capacity to make funding available for high-risk - but high reward - ventures,' he said, highlighting the goals of the EU's financial services action plan.

He noted that he had already talked with single market chief Frits Bolkestein about their desire for a 'transatlantic capital market' with 'deep and resilient capacity to sustain both of our economies'.

He also applauded the Spanish presidency's efforts to speed up reform of the EU's securities market regulatory structures.

The day before Schnabel's speech, the Commission emphasised many of the same goals and reaffirmed the EU's commitment to Lisbon.

'We know what needs to be done to meet our strategic goal for this decade,' said Commission President Romano Prodi, releasing the EU executive's spring report in advance of the 15-16 March Barcelona summit. 'The euro changeover is practically completed. We have monetary union. Now we must turn our attention to economic union - and make it a tangible reality.'

Rockwell Schnabel, the US ambassador to the EU, has called on Europe's leaders to make more progress in areas such as telecommunications, take-over rules, single European sky, pension reform, the Community patent and trans-European networks now that euro notes and coins have successfully been launched.