23/03/2005 1:32:59 pm
A European Setback. The French delegation to the EU summit obviously stayed at the same hotel in Brussels as the one where I was debating. I felt some urge to try to find a certain President and tech him some logic and market economics. The result from the EU summit, that Chirac succeeded in blocking the directive to create a European single market for services, is a big setback for us who want increased growth and new jobs. Now, a new directive is to be written, which is said to prohibit "social dumping" - that is, nobody should be allowed to compete with a lower price. The new directive is also specifically taking out the welfare services from competition - exactly the ones that need it the most. I just met a person here coming from the press conference with Chirac, and the President had been very happy, claiming to have saved the European Social Model. He has a point. He has saved parts of the Model for a while longer. But he has saved that which keeps us in trouble, that which gives us low growth, high unemployment and bad welfare services. Congratulations.