YES IT'S ABOUT GROWTH MR. PRESIDENT!

Europe needs to get its growth groove back. But how? A growth agenda for Europe requires several parts: 1) an emphasis on productivity growth, with policies to support saving and investment, innovation and research, trade, education and training; 2) a budget framework that does not threaten European fiscal health; (3) tax policy that enhances economic growth; 4) regulation that balances growth with concerns about safety and soundness, and 5) a healthy financial system that meets the needs of savers and borrowers.

These policy elements have three themes in common. First, they are unabashedly about long-term growth, not about papering over structural economic problems with "stimulus". Second, long-term policy uncertainty about runaway entitlement spending, or threats of higher taxes, or increasing regulation, or failing to pursue global markets, constrains household and business spending today. Third, they are the key to shared prosperity.

These themes will remain a critical part of economic policy debates both at the EU and Member State level in the coming years. From here, three policy steps are required:

1. Grasp of the structural problems facing the EU and individual Member States
2. Clarity in the future path of policy
3. Action leading implementation of smarter policy.

European economies will succeed provided there are high levels of research-and-development spending, labour force participation and economic growth.

Failing to change course will set the European Union on a path of slow growth, high joblessness. Action requires leadership.