NEWS

EU to be market economy with a social dimension

What about the EU’s social structure? Do you believe the future model will still be based on the social market economy? Recently, there was an article in the International Herald Tribune claiming that the model was outdated, with the movement of businesses to Eastern Europe in search of cheap labor. It proposed the British model of a flexible labor market and relatively low taxation. First of all, I am not at all sure they are right. Secondly, the European model is not as inflexible as they claim. Thirdly, Article 3 in the draft Constitution determines the EU’s goals relating to economic and social policy. We say that it is a market economy with a social dimension, aimed at full employment and social protection. That is the model. The doctrine is not itself that of a market economy, but a social market economy, with full employment – in the modern sense of the term – for those who want to work. The goal is feasible. However, it presupposes an acceleration of growth rates, because the Union’s economy cannot remain as it is for another 15 years. It also presupposes a stronger policy in certain areas. Some of these are the Union’s jurisdiction, others are those of the member states. After all, we cannot impose the same collective agreement on Greece as we do on Poland, but the growth rates can be improved within the eurozone by means of a stronger economic policy.