Brussels, 24 March 2023 – At the European Council and the Euro Summit meeting, the heads of state and government of the European Union discussed ways to boost the competitiveness of the European economy and controlling inflation caused by high energy prices. They also discussed budgetary and economic policies.
“We discussed strengthening the competitiveness of Europe’s economy. It is clear that the Single Market is the basis of our success and boosts the economy and our well-being. We must develop it further, so that Europe would not be left behind in terms of competitiveness compared to the rest of the world.” said Prime Minister Kaja Kallas.
According to the prime minister, solutions were discussed that would make operating in the internal market of the EU as easy as possible for entrepreneurs. “The competitiveness of European businesses is hampered by a heavy administrative burden, so reducing it and using smart data-based solutions saves everyone time and money and we have to work on it. Governments must provide an environment that would promote development and growth to allow businesses to focus on their strengths: developing products and services, selling, growing, and being efficient,” the prime minister said.
“Less bureaucracy, simplification and harmonisation of reporting obligations, and fair and strong competition, combined with the free movement of capital and people, will help businesses achieve the full potential of the EU internal market. The free movement of data and better standardisation will make it possible to use artificial intelligence and thereby reduce the administrative burden,” the prime minister added. According to Kallas, the first meetings between Estonian and European Commission officials have already taken place to explain Estonia’s solutions in greater detail. The European Commission will present proposals by autumn on how to reduce and simplify reporting obligations for businesses.
Heads of state and government also discussed the readiness and preparedness of the energy sector for the next winter. “We have survived this winter, but we have to use this time window where prices are more favourable, to fill our storage facilities. At the same time, we need to work on improving our connections, develop solutions for demand response, and accelerate the introduction of renewable energy to the market,” said Prime Minister Kallas. “To this end, it is necessary to adopt electricity market reform that will, among other things, provide affordable prices to consumers,” the prime minister added.
The euro area meeting, which took place after the European Council, addressed the financial and economic situation. “We acknowledged that this year, the economy is in a better position than expected, despite high inflation. We agreed to return to a responsible and more sustainable fiscal policy after the pandemic years. This means that Member States need to implement measures to reduce their budget deficit and public debt and avoid persistent budget deficit. We must also not forget the lessons of the previous financial crisis – in the European Union, the requirements for banks have justified themselves and the banks are strong,” said Prime Minister Kaja Kallas.
Conclusions of the European Council: https://www.consilium.europa.eu/en/meetings/european-council/2023/03/23/
Photos: https://www.flickr.com/photos/stenbockimaja/albums/72177720306953562
