Berlusconi urges increased public, private investment to spur EU growth

Italian Prime Minister Silvio Berlusconi, whose country holds the current EU presidency, appealed Wednesday for an increase in public and private investment to galvanize a faltering EU economy.
He told the European Parliament here it was crucial to promote European competitiveness by boosting investment -- notably in the transportation sector -- in conjunction with financial institutions such as the European Investment Bank.

"This strategy should be based essentially on policies aimed at revitalizing European (transportation) networks," he told lawmakers.

But Berlusconi stressed that in financing such projects governments should continue to respect the European Union's 1997 Stability and Growth Pact, which obliges euro-zone members to hold their annual public deficits to under three percent of output.

He said the European Union was likewise challenged by the ageing of its population and called for a consideration of policies "aimed at increasing the activity level of older workers and reducing trends toward pre-retirement."

At the same time, he added, "a spirit of enterprise" should be encouraged, especially at small and medium-sized companies.