EU official says new reforms needed as conventional approach breaks down

The European Union (EU) needs to carry out "structural reforms 2.0", which focuses on enhancing human resources, to boost the bloc's competitiveness, a senior EU official said Thursday.

Addressing the Brussels Economic Forum, European Commissioner for Economic Affairs Pierre Moscovici said a new set of reforms that benefit the work force is needed to reinvigorate the European economy, as the conventional approach faces strong opposition.

The newly pushed "structural reforms 2.0" will increase the productivity and flexicurity of the labor force, which will be more acceptable as it is perceived as being more fair, Moscovici said.

"Productivity" is achieved by education, including higher education that directly impact the level of research and development and training programs for workers, the unemployed and migrants.

Through better training, workers are able to gain "flexicurity," which means skilled workers don't need to worry about being out of a job, and "it is about worker security, not only job security," Moscovici said.

Moscovici said previous structural reforms cut commodity price and wages and tackled traditionally protected sectors with strong vested interests, creating fierce opposition.

"These political economy considerations make the adoption and implementation of this type of structural reforms a very difficult task to some of the population," he said.

The Brussels Economic Forum, dubbed the flagship annual economic event of the European Commission, the EU's executive arm, has gathered the bloc's policy makers, opinion leaders, business leaders and civil societies to discuss economic problems of the union. Endi