DECLARATION On the Future of Economic Reforms in Europe Signed by Non Governmental Organisations and Individuals from EU Candidate Countries Bratislava, March 2004 Accepting responsibility for the future development of the enlarged European Union, Based on the experience from our transition process from a closed, centrally-planned to an open, market-oriented economy, With respect to the common history of Europe, to the common values shared among the current and the future EU Member States, Having in mind a growing role of civil society in consultation mechanisms in governing the European Union and individual Member States and also Taking into account the growing mobility of goods, services, people, capital and information not only within the EU but also between Europe and the rest of the world, We, the undersigned organisations and individuals, declare the following ideas, which are addressed to the Member States and the European institutions and which are crucial for the success of future economic and social reforms, and thus for the prosperity and stability of Europe: TRUST - Infrastructure of values supports long-term economic growth more than roads, pipelines and wires i. Breaking rules dismantles trust We cherish compliance with formal and informal rules that the EU is based on more than financial benefits (For example: we will not support the breaking of the Stability and Growth Pact by the net contributing countries, even if such a position would lead to the lowering of subsidies to our countries). If a rule is wrong, it should be changed, rather than broken. ii. Building trust requires clear language Having had long experience with confused and unclear public discussions, and with politicians' obfuscation, we strongly support communication of sophisticated and often misleading concepts into language understandable and trusted by the general public (For example: does the plan to encourage competitiveness mean lowering taxes, and thus, reducing redistribution, or does that mean growing subsidies to businesses and thus, increasing taxes?). Lack of clarity undermines trust and discourages citizens from participating in the political life in the EU. COMPETITIVENESS - Competitiveness is mostly enhanced by decreasing barriers to competition iii. Limits to cooperation causes loss of welfare Restrictions to free trade in goods and services and free movement of labour need to be eliminated in the EU. More aggressive trade liberalisation (in agriculture for example) can also mitigate negative effects of massive migration of workers from poor countries. iv. Efficient regulations and low compliance costs for businesses are crucial for sound European economy New regulations should be introduced only after regulatory impact assessment, proving their benefits for the business environment. Old regulations should be reassessed based on the effects of EU enlargement and globalisation. v. Re-definition of public goods is now relevant again The current definition of public goods is vague and old-fashioned. Having declared some goods as public some time ago, EU countries should not ignore the changing international circumstances, e.g. growing competition for investments and talented people (examples: "free" university education, inefficient pension schemes). vi. EU should be open not only to internal but also external competition Openness towards external partners is mutually beneficial. REDISTRIBUTION - Globalisation is redefining the optimal level of redistribution vii. High level of redistribution discourages investors from searching for new business opportunities at the expense of all of us The link between work and income is either weak, or unclear in many old and new Member States as a result of the inefficient and often too generous social systems. viii. The social and state aid systems must only help those who are in real need If aid is granted to companies, states, regions and individuals who do not really need it, there is less room to help those who really do. Inefficient social systems are, in fact, anti-social. They support rent-seeking behaviour. In the early 90s, the West brought a "wind of change" to the countries that are now, after almost 15 years, entering the European Union. We now feel that we are, in return, able and ready to inspire changes within the expanded European Union. We hope that full implementation of the above notions will be a welcome contribution to building a more dynamic, open and prosperous Europe. DECLARATION ATTACHMENT: LIST OF SIGNATORIES NGO Name Affiliation Country Candidate Countries   Asen ANGELOV Chief Engineer American College of Sofia; Floyd Black Lane, P.O. Box 873, Sofia 1000 Bulgaria Bulgaria ICES University of Bucharest Ion ANTON Bd. M.Kogalniceanu, 64 University of Bucharest, room 220 Romania   Rudo AUTNER Slovak Rating Agency, Chairman and CEO, phone:+421254645151, fax:+421254645152, www.slovakrating.sk, autner@slovakrating.sk Slovakia   Peter BADIK   Slovakia Institute for Private Enterprise and Democracy Mieczyslaw BAK IPED President Poland   Mario BLASCAK, Mgr. Ludova banka, a.s. Analyst, Vysoka 9, 81000 Bratislava, Slovakia, Tel.:+4212 59651117, Fax:+421254412444 Slovakia   Martin CHREN F.A.Hayek Foundation Slovakia Lithuanian Free Market Institute Gediminas GALKAUSKAS   Lithuania Dr.Ivan GINEV Datapharm Co BG 1504 Sofia,50, Yanko Sakuzov blvd., tel.(+3592)8466675,fax/tel.9431511 Bulgaria INEKO Peter GOLIAS www.ineko.sk Slovakia Gdansk Institute for Market Economics Maciej GRABOWSKI Vice President Poland   Julius HORVATH Central European University, Budapest Hungary   Michal HORVATH   Slovakia   Igor HURCIK Slovak Telecom, a. s. EVP&CIO, Nám. Slobody 6, 817 62, Bratislava, Slovakia, Tel:+4212 55815000, Fax +42125249 9621, igor.hurcik@st.sk, www.telecom.sk Slovakia   Juraj JAKUBOVIC ml. Slovak Rating Agency, Director for Trade and Marketing +421254645151 jakubovic@slovakrating.sk Slovakia INEKO Eugen JURZYCA Bratislava, www.ineko.sk Slovakia Institute for Market Economics Svetla KOSTADINOVA Researcher, Sofia, Bulgaria, Tel/FAX+35929447119, www.ime-bg.org, www.easibulgaria.org Bulgaria   Jan KOVALCIK Trend Analyses www.trendanalyses.sk kovalcik@trend.sk Slovakia   Juraj LAZOVY Entrepreneur Slovakia Institute of International Relations Vladimir LESKA, Ing. Nerudova 3, 118 50 Praha 1, Czech Republic,leska@iir.cz Czech Republic   Prof.Med.Univ. Dr. Branislav, LICHARDUS, DrSc. College of Management, City University Program Rector, First Slovak Ambassador to the USA 1994-1998 Panonska 17, 851 04 Bratislava Tel:+421263810601 blichardus@cutn.sk Slovakia   Anton MARCINCIN Economist www.worldbank.sk Slovakia Lithuanian Banking, Insurance and Finance Institute Eugenija MARTINAITYTE Director Lithuania Institute of Economic Studies Michal MEJSTRIK ies.fsv.cuni.cz Czech Republic Institute for Public Affairs Grigorij MESEZNIKOV   Slovakia   Vladimir MIRCHEV University of Economics, Varna, student Bulgaria   Emil MUTAFCHIEV mail:emil@manager.bg; Golash str., Sofia 1111, Bulgaria Bulgaria Centre for Economic Development Ivaylo NIKOLOV Programme Director, 1 Balsha Street, block 9, Sofia 1408, Bulgaria Bulgaria   Frantisek OKRUHLICA   Slovakia Slovak Governance Institute Andrej SALNER, MSc. Bajkalska 25, 827 18 Bratislava 212 Slovak Republic, www.governance.sk, sgi@governance.sk Slovakia Institute of Economics of the Hungarian Academy of Sciences Magdolna SASS Research fellow, 1112 Budapest, Budaörsi út 45., Hungary, sass@econ.core.hu Hungary Center for the Study of Democracy Ognian SHENTOV 5 Alexander Zhendov Street, Sofia 1113, Bulgaria, Tel:+3592 971 3000, csd@online.bg Bulgaria Slovak Press Watch / INEKO Gabo SIPOS www.ineko.sk Slovakia   Miroslav SIVACEK, Ing. Chemolak, a.s. Smolenice Managing Director, President of the Association of Coatings Manufacturers of the Slovak Republic Slovakia   Andrej SPISIAK, Ing. Slovak Rating Agency, Analyst, spisiak@slovakrating.sk Slovakia Institute for Market Economics Krassen STANCHEV Executive Director (3592) 943 3352,943 3648 82A Dondukov Blvd. 1504 Sofia, www.ime-bg.org Bulgaria   George STRATEV President Tangra Company Ltd. 6th September Boulevard 159 Plovdiv 4000, BULGARIA Tel/Fax: +359 98 537 168, +359 32 626 898 www.tangragroup.com Bulgaria   Igor TOMES Charles Univesity, Prague Chief Consultant of Personnel Consulting, V Kapslovne 7, 13000 Praha 3, Czech Republic, tel./fax+420271776932 Czech Republic   Jan TOTH ING Bank Slovakia Chief Economist, jan.toth@ingbank.sk Slovakia Center for Economic Development Lubos VAGAC www.cphr.sk Slovakia INEKO Dusan ZACHAR www.ineko.sk Slovakia Transparency International Slovakia Daniela ZEMANOVICOVA Program Director, Bajkalska 25, 827 18 Bratislava 212, tel: +421253411020, fax:+421258233304 danielaz@transparency.sk, www.transparency.sk Slovakia   Eduard ZITNANSKY PROFINI Slovakia Applied Research and Communications Fund   5 Alexander Zhendov Street, Sofia 1113, Bulgaria, Tel:+3592 971 3000, arc@online.bg Bulgaria Research Centre Slovak Foreign Policy Association   Panenska 33, 81103 Bratislava 1, 02/54430210, sfpa@sfpa.sk Slovakia Slovak Institute of Directors   Obchodna 9, 811 06 Bratislava, Slovak Republic Slovakia Other Countries   Oleg E. ADAMOWSKI Centre for Economic and Financial Research (CEFIR) Russia Eureka - Independent Sociological Centre Dr. Vasfi BARUTI Director Tel - Fax: 00355 42 254 356 Eureka@abissnet.com.al Address: Rr. Shinasi Deshnica, Pallati ri nr.70, k.3, Ap. 2, Tirane Albania   Ann METTLER Executive Director The Lisbon Council for Economic Competitiveness info@lisboncouncil.net Belgium   Jozef VASAK Stagiaire at European Commission Economic and Financial Affairs DG Belgium   Livia ZEMANOVICOVA EPP Secretariat in the Committee of the Regions Administrator, rue Montoyer 92-102, Bruxelles, Tel:+3222822132, Fax:+3222822329 livia.zemanovicova@cor.eu.int Belgium