McCreevy warns EU markets must be opened up
Allowing businessmen and professionals to block the opening up of markets in European Union States is unacceptable, it was claimed today.
Charlie McCreevy, former finance minister, said lawyers, tradesmen and other business leaders had the right to protect their industries but not while imposing over-the-top charges to the customer.
Mr McCreevy, head of Internal Markets at the European Commission said he had witnessed enormous resistance to the full opening up of markets from those who had a vested interest in preserving the status quo.
“Everyone likes to protect their own cosy patch. But in the long run, protectionism comes at the expense of growth, innovation, jobs and living standards rather than at the expense of the privileged who have been protected,” he said.
“It comes at the expense of those who are forced by the absence of choice to do business with them or buy services from them.”
Mr McCreevy told the sixth annual Finance Dublin conference it was understandable that the professionals resisted change.
And he warned that the political situation in Europe could slow the opening up of markets in the short-term.
“But longer term it is simply not acceptable,” he said.
“It doesn’t matter whether it is the tradesman, the doctor or the lawyer. Too often it is the customers, the clients and the patients who pay the price whether by being subjected to excessive charges, overweening arrogance, bad service or limited choice.”
The former finance minister said more open markets would lead to competition in efficiency, price and service provision.
Mr McCreevy also had a stark warning about the future of pensions.
He said demographics and poor economic performance across many European States pointed to inadequate pension provisions for many in the next 20 to 30 years.
The head of Internal Markets said many State pension plans were already being labelled junk bonds.
“The implications of this in terms of substantially increased borrowing costs converging with the costs of a rapidly rising dependency ratio should be a wake-up call to member sate governments everywhere in Europe,” he said.
“If politicians across Europe duck the challenges now Europe’s next generation of pensioners will live in penury, emerging markets outside of Europe will rapid pass us out and our children and grandchildren will not forgive us.”
