Europe must embrace and not fear economic globalisation if it is to reap the benefits of the opening up of world markets, European Commissioner Charlie McCreevy said yesterday.
Addressing a gathering of the German-Irish Chamber of Commerce in Dublin, Mr McCreevy said that there is little evidence to support many of the feared effects of globalisation such as concerns about jobs, wages and living standards, and urged business leaders to make the most of the opportunities offered by the open market.
"Europe does not need to fear economic globalisation," he said. "It is not new and has worked well for the people of Europe over the last half-century."
Emphasising the fact that globalisation hasn't produced any casualties yet, Mr McCreevy said that the European Union has defended its market share in global trade and that data on foreign investment doesn't suggest any significant outflows of capital to low-wage countries. He also said that the outsourcing of business services has been matched by rising exports, leaving an overall net effect on employment. Europeans should embrace the prospects offered by the rapid global economic change being witnessed, such as further gains in living standards, as well as lower prices for consumers and companies, enhanced international trading volumes, higher productivity and a wider choice of product varieties, said Mr McCreevy.
Another important aspect of the open market phenomenon is, according to Mr McCreevy, the ability to outsource some back and middle-office operations to other locations, freeing up resources for companies to concentrate on things they do well.
