ECONOMIC POLICY: MEETING THE CHALLENGES OF GLOBALISATION.

Summary: The President of the European Commission, Jacques Santer, forwarded to the European Union Heads of State and Government, meeting for the European Council in Vienna on December 11-12, a raft of ideas on the challenges to the European economy posed by globalisation. The document puts forward the European Union's know-how as a way of ironing out the financial and economic imbalances caused by globalisation

Speaking to the press in Brussels on December 8, Jacques Santer reminded his audience that the Vienna European Council would be taking place just two and a half weeks before the arrival of the Euro. Such an historic event was tangible proof that Europe is moving forward. He expressed particular satisfaction that the Finance Council managed to bring positions closer on the question of the external representation of the Euro zone, and he added "Europe must respond to the international financial crisis and the more general problem of globalisation by speaking with one voice". The text of the discussion paper he sent to the European Council calls for the development of European integration to preserve the European model of society. Mr Santer suggests boosting the capacity of Europe's economies to adjust to the changes being wrought by globalisation by strengthening education, vocational training, research and tax reform. The debate about the adjustment of social policies and employment policies must, he said, be set in a European context. With the arrival of the single currency, the countries of Europe cannot afford not to think and act together on these matters...