Ex-Irish PM calls for policy changes on immigration

Europe needs to address the problem of low population growth if it is to remain competitive in the rapidly changing international environment. This was one of the key messages delivered by former Irish prime minister John Bruton to the eleventh annual conference of the European section of the Urban Land Institute held in Paris on Wednesday.

Highlighting the demographic imbalance between Europe and the US, Bruton said Americans were having an average of two children per family whereas many European countries such as Italy and Spain are not averaging more than 0.9. 'This is leading to major sustainability problems', he said, adding that France stands out in a positive sense in Europe due to fiscal incentives for having more children. 'At 1.9 the birth rate in France is almost at replacement level. We must have more children in Europe and it can be done!'

Bruton is currently EU ambassador to the US. Drawing on his experience of the US market and his time as prime minister of Ireland, Bruton stressed the importance of 'openness to immigration'. 'Ireland, the UK and Sweden immediately opened their labour markets to the new EU members. Ireland's strong economic growth since 2000 has been mainly driven by construction for and by immigrants.

Bruton pointed out that Europe had seen strong economic growth since the 1950s until 1995 when incomes rose to 95% of US levels. Since then European economic growth has lagged the US. 'Since 1995 the US have made better use of IT and they have been more open to immigration', Bruton said.

Bruton also made a plea to further embrace globalisation in the business world. 'Up to 2000 Ireland attracted more foreign investment than any other European country. That is largely due to a low, stable and simple company tax policy of 12.5% across the board. That is one of the factors why Ireland has performed so well.'