"Europe should stick to an open economy, to competition and we should refuse protectionism. It will not save one single job in the long run to protect non-competitive industries"

Anders Fogh Rasmussen's quote emphasizes the value of maintaining an open economy and promoting competition within Europe. By "open economy", Rasmussen describes a system where trade barriers like tariffs and quotas are decreased, enabling the complimentary flow of items, services, capital, and labor throughout borders. Such an environment motivates innovation, efficiency, and growth, drawing financial investment, promoting innovation, and developing tasks.

When Rasmussen discusses competition, he underscores the worth of a market environment where companies aim to enhance efficiency, decrease expenses, and innovate to satisfy customer demands. Competitors typically results in much better product or services, lower costs, and technological improvements. On the other hand, protectionism, which involves shielding domestic markets from foreign competitors through tariffs, subsidies, or import quotas, can lead to inadequacy and stagnation.

Rasmussen argues that protectionism may offer momentary relief or advantages to certain domestic industries, however it is not sustainable in the long term. By insulating non-competitive industries from worldwide competition, protectionism dissuades innovation and adaptation, eventually leading to downsides rather than safeguards in work. Companies that are protected from competitors might do not have the motivation to innovate or cut costs, triggering them to fall behind global competitors. This lack of competitiveness can lead to a decline in industry, loss of market share, and eventually job losses.

Furthermore, protectionism can provoke trade wars, with trading partners striking back through tariffs and other barriers, harming exports and financial relations. Such policies can also lead to inefficiency where resources are designated to markets not because they are competitive, however because they are protected, resulting in a misallocation of resources.

Rasmussen's call is a plea for Europe to embrace globalization's vibrant nature, adjust to altering conditions, and concentrate on producing an economic environment where services can grow, innovate, and complete on an international scale. By doing so, Europe can make sure sustainable economic growth and task creation in the long run.