Ahern to call for action to make work more attractive, writes Denis Staunton, in Davos.
The Taoiseach will outline the Irish Presidency's strategy for giving fresh impetus to economic reform in the EU when he addresses international business leaders in Davos today. Mr Ahern is expected to use his address to the annual meeting of the World Economic Forum to warn that failure to introduce reforms could prevent Europe from reaping the benefits of a global economic upturn.
Officials say that the Taoiseach will call for more investment in infrastructure, education and research, a more flexible labour market and the maintenance of strong social protection. He will say that action by all member-states to make work more attractive and responsive to change is now urgent.
Mr Ahern is expected to back the Minister for Finance, Mr McCreevy, and most EU finance ministers in their resistance to calls for an early reform of the Stability and Growth Pact. Officials say he is likely to acknowledge that the EU's budget rules need improvement but to advocate a period of reflection before changing them.
Mr Ahern will hold private talks in Davos with a number of business figures, including Unilever's Mr Niall FitzGerald and the chairman and chief executive of Hewlett Packard, Ms Carly Fiorina.
In Davos yesterday the Tánaiste, Ms Harney, told a panel on regulation and innovation that Europe needed to develop a more attractive environment for entrepreneurs that was more tolerant of business failure.
"Those who fail at business ventures in Europe find it very hard to start again," she said.
Ms Harney said that regulators should consider the Hippocratic oath that urges doctors; first, do no harm. She said that administrative difficulties that made it difficult to access research grants should be removed and that Europeans should emulate Americans in their capacity for getting things done.
Business leaders on the panel said, however, that over-regulation was not the main reason Europe was lagging behind the US in research and development. AstraZeneca's chief executive, Sir Tom McKillop, said that regulatory hurdles were rising throughout the world.
He said that it cost an average of $1 billion to put a major new pharmaceutical product on the market, following a 10-year process during which it has a one-in-10 chance of approval. "If we're not careful, society will not have many new products and there are a lot of diseases out there that you've got to treat," he said.
Earlier yesterday, the US Commerce Secretary, Mr Don Evans, told edgy business leaders that the US recovery was "strong and getting stronger" and that new jobs would soon be on the way.
He said low inflation would continue to let the US stimulate the economy with low interest rates and fiscal stimulus.
"So I'm one that's optimistic. I feel like inflation is in check and will remain in check for quite some time and will give us the room to pursue the kind of pro-growth fiscal and monetary policy that we have been pursuing," he said.
Mr John Sweeney, president of the AFL-CIO trade union, said however that better growth was not helping US workers, who saw good jobs disappearing to be replaced by less well-paid work "Yes, growth is up but neither jobs nor wages have recovered."
