EUROPE – The European Union’s internal markets commissioner Charlie McCreevy has outlined the sorts of markets that he thinks will be needed to generate the tax revenues needed to fund pensions in the future.
“At European level and in the member states - we must provide the political leadership that will win support for change and for the kind of pan-European markets that will deliver success,” McCreevy told an audience of economists.
He cited integrated markets and “scale” economies that are regulated to ensure competition.
And he saw “capital markets that are deep, efficient, transparent and liquid” and labour markets that are “educated, skilled, innovative, and flexible”.
He said: “These are the kind of markets that will nurture confidence in Europe as a place to work, to innovate and to invest.
“These are the kind of markets that will create the jobs that will raise the living standards for those in work and put more people back to work.
“And these are the kind of markets that will generate the tax revenues to fund the pensions for those too old to work.”
McCreevy, speaking at the annual Kenmare event organised by the Irish Economic Association, said he hoped for progress in facilitating UCITS fund pooling and mergers if the tax obstacles could be overcome. “That will help extract further scale economies for operators,” he added.