By Martin Banks - 14th October 2008
Some member states may be tempted to retreat into their national borders and revert to protecting their own business and industry but we have to do all we can to avoid that
Arlene McCarthy
EU member states have been warned against introducing protectionist measures in wake of the global financial crisis.
Speaking in the European parliament on Tuesday, senior Socialist MEP Arlene McCarthy said that such a move could have a "disastrous" effect.
The British deputy, chair of parliament's internal market and consumer protection committee, drew comparisons with "the last" major financial meltdown, in 1929, which, she said, resulted in a "retreat" into national protectionism.
"For goodness sake, let us try and avoid the potentially disastrous results of doing that”.
She added, "We have difficult times ahead and the financial crisis is a critical time for business. But this is why it is all the more important that we keep open, in all 27 EU member states, borders for trade and the internal market.
"Some member states may be tempted to retreat into their national borders and revert to protecting their own business and industry but we have to do all we can to avoid that."
The parliament event, organised by Eurochambres, brought together business leaders and entrepreneurs from across Europe. High-level speakers included EU internal market commissioner Charlie McCreevy.
Speaking earlier at a news conference, McCarthy said the conference was a good opportunity for MEPs to "listen to the concerns" of industry and, consequently, to decide what they can do to offer assistance "through these difficult times."
"Above all, though, it is important that we keep internal borders in the EU open for trade and retain the internal market for trade."
Her comments come in the wake of claims that some EU member states, such as Ireland, have acted purely in their national interest, in Dublin's case by guaranteeing savers' money.
She told delegates, "It is important for us to listen to your concerns and ideas and what we as parliamentarians can do to support and assist the business community through these difficult times."
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