The results of the European parliamentary elections have sent a clear signal to EU leaders that they must deliver more by creating growth and jobs, finance minister Jeroen Dijsselbloem said on Monday.

Dijsselbloem, who is also president of the Euro Group of finance ministers, was speaking at a panel discussion in the Portugese city of Sintra organised by the European Central Bank.

‘Only through more growth and job creation can Euro-scepticism be defeated and for that it is crucial to keep to the restructuring agenda,’ the Financieele Dagblad reports him as saying.

Conclusion

According to Dijsselbloem, the conclusion to be drawn from the elections is not that Europe should look for easy solutions. That would be wrong and lead back to the crisis. Nor would allowing budget deficits to rise on the promise of reforms the next year help the situation, he said.

For Dijsselbloem, the answer is more flexibility in the labour market and the liberalisation of goods and services.

More pain

He accepts this would cause more pain for those affected but thinks people are too impatient. ‘We have lived above our means for years throughout Europe and we now have to adapt to the new circumstances,’ he said.

The minister thinks Europe is missing out on a great deal more growth, pointing to figures from the OECD that show there is 6% GDP growth to be found in Europe.

Dijsselbloem also said the subsidiarity principle should be central to the EU, with a good definition of what should be done locally and regionally and what should be done by the EU, such as the banking union.