Jean-Philippe Courtois; Selling More Than Software.(Interview)(Excerpt)

Microsoft has been something of a bete noire in Europe, slammed by Brussels last March for antitrust violations. But with governments backing off of the painful measures necessary to make Europe more competitive--German Chancellor Gerhard Schroder has seen his popularity skyrocket since he stopped pushing change--and European Commission President Jose Manuel Barroso trying to energize and focus the so-called Lisbon Agenda reforms, the American software giant says it can help fill the gap. The company is positioning itself and its technology as a key player in helping both businesses and European governments improve their competitive skills. NEWSWEEK's Karen Lowry Miller spoke with Jean-Philippe Courtois, CEO of Microsoft Europe, Middle East and Africa, about the role his company thinks it can play in revitalizing the European economy. Excerpts:

Why should Europe listen to Microsoft?

There is a lot that can be done using global companies to both help innovate the R&D agenda and make it very concrete. It's about IT contributing to the Lisbon Agenda. For example, helping governments be more productive and efficient using technology. Also helping small and medium businesses, which are so critical to the success of the economy overall.

What do you think of the Lisbon Agenda's emphasis on economic growth?

I think a targeted approach is a smart thing to do. You had perhaps hundreds of goals making the whole thing completely unmanageable. The difficulty is in having this change happen both at a national and at the European level. There is not a one-size-fits-all solution.

What must national governments do?

The public administration must lead by example, using technology to be transparent and to be more effective in the core services for citizens. Then, on research, Europe [must] open up the universities so they are not isolated from the economy [and] can develop their own revenue streams.