13/01/2005 11:31:09 am
What the EU Should Focus On. In the Central European countries, economic growth was 4,6 % in 2004, up from 3,5 % in 2003. In large part, the fact that they prepared to enter the single European market and their EU entry in May, contributed to this. In Poland, total exports rose by 30 % during the first nine months of 2004. Tourist numbers increased by 20 % following the introduction of low-fare airlines after their entry into the single market. In the three Baltic countries, average growth was a very high 6,7 % in 2004 - lower than in 2003, but very good considering the fears that their very liberal economies would get too regulated with EU membership. And we see the healthy competition for Western Europe brought on by these newcomers in, for example, tax rates. Slovakia has a 19% flat tax rate for income, corporate and VAT. Polish politicians are discussing a similar rate of 15 %. Thus, Austria has felt the need to lower its corporate tax rate from 34 to 25 %. In sum, the EU single market - boosting trade, mobility, competition and growth - is precisely what the EU should focus on. Not subsidies and new regulations.