RIGA - In her address at Leiden University in the Netherlands, President Vaira Vike-Freiberga called on European states to foster their competitiveness in the world and respect for the freedom of movement of labor, capital, goods and services.
The president said that Europe had fallen victim to its success since it is now losing privileges due to global competition. "Competition from the outside is becoming increasingly fierce. Europe will have to take some painful steps to foster its economic growth. In that respect, the accession of 10 new member states, where wages are generally lower, might provide the needed stimulus for Europe to regain its competitiveness," said Vike-Freiberga.
Andrejs Pildegovics, the president's foreign adviser, said that the president had implied the recent incident in Sweden involving Laval and Partners, a construction company whose work was blocked by local trade unions after a group of Latvian laborers on the project refused to work according to Swedish trade union rules.
The president believes this incident has made many think about the single economic space in Europe. In her words, "I believe that the basic principles of a free market economy must remain in place; that the free movement of persons, goods and services must be observed within the EU-25. The EU will have to address some serious issues, where the social contract in some countries has put in place unacceptable barriers to free-market economic principles."
