Representatives of the Malta Federation of Industry (FOI) have participated in the BUSINESSEUROPE Council of Presidents, held in Paris this month.

The BUSINESSEUROPE Council of Presidents includes member representatives from 40 Federations of Industry from 34 European countries, including the Malta Federation of Industry.
The Council discussed post-Lisbon strategy, concluding that if the EU wants to confront the rising complexity of today’s global environment with confidence, it must restore the credibility of its growth and jobs agenda.

The Council also recommended that EU and national policies are strengthened by deepening economic integration, enhancing innovation, skills and entrepreneurship, putting modern employment and social policies in place, integrating energy, environmental and competitiveness policies and shaping globalisation and fighting protectionism.

BUSINESSEUROPE called for the EU legislative process to become more mindful of competitiveness issues and to radically modernise the EU budget. It also expressed concern at the risk that the financial crisis will have on future access to capital. “Broad access to finance is an essential component of a dynamic, innovative and adaptable economy, and will need to be a permanent concern of policy makers in the coming years,” the Malta Federation of Industry said.

Another point of discussion during the Council meeting was the effect of emerging markets such as China, India, Brazil and Russia, whose combined GDP is expected to outweigh both the US and EU economies by 2010. The Malta Federation of Industry said that the rise of these countries creates enormous trade, investment and growth opportunities for the EU economy, as well as posing challenges on issues like energy and food security, climate change and global financial stability. “Future EU policy orientations will need to reflect this new world economic order by developing clearer external polices and ensuring domestic policies are conducive to global competitiveness,” the Federation said.

“The EU also faces the prospect of a shrinking labour force and aging population. These demographic trends put increasing focus on the need for higher labour productivity growth, more skills and adaptability, and a consistent strategy to attract talent from across the globe to Europe. It also suggests that the sustainability of public finances and social systems will need to be reinforced to avoid putting an unbearable burden on future generations,” the Federation of Industry said.

Another key challenge highlighted by the Council was the need to accelerate transformation of the European energy system and to a low-carbon economy. The Malta Federation of Industry said that he extent of these challenges will require significant changes in consumption and production patterns, as well as significant investments, more technological innovation and increased energy efficiency in order to reach the 2020 targets.