The “Re-launched” Lisbon Strategy and competitiveness

Background

The Lisbon Strategy, which aims to make the EU “the most dynamic and competitive knowledge-based economy in the world capable of sustainable economic growth with more and better jobs, greater social cohesion, and respect for the environment” by 2010, was adopted by the European Council in 2000. It seeks to promote strong economic growth and employment on the one hand, coupled with a high degree of social cohesion and environmental protection on the other. In 2004, the European Council and the Commission decided to prepare a mid-term review of the Lisbon Process, which would be presented to the Spring Council in March 2005.

Five years after its launch, it has become clear that there has been far too little progress to date on that part of the Lisbon Agenda that currently focuses on the creation of wealth. The mid-term report, launched by the Commission in February 2005, aims to revitalize Lisbon Agenda. The actions proposed in the report are intended to boost GDP by 3% by 2010 and create over 6 million jobs. There is a compelling case for urgent action. Five years after its launch, the Lisbon Strategy is not on track to deliver the expected results.

The Council Discussion and the “re-launch” of the Lisbon Strategy

On 22-23 March 2005 the Council held its spring meeting where, among other things, the Lisbon Strategy was discussed. JAMA is pleased that the Council has asked to “re-launch” the Lisbon Strategy without delay and re-focus priorities on growth and employment. JAMA fully supports the main principles and goals of the Lisbon and Gothenburg strategies – working towards sustainable economic growth with more and better jobs, greater social cohesion, and respect for the environment.

In particular, the Council has called on the EU to “renew the basis of its competitiveness, increase its growth potential and its productivity, and strengthen social cohesion, placing the main emphasis on knowledge, innovation, and the optimization of human capital.” To achieve these objectives, the Council called on the EU to mobilize all appropriate national and Community resources in the Strategy’s three dimensions in order to “better tap into their synergies in a general context of sustainable development.” The Council also appealed to other concerned parties, such as parliaments, regional and local bodies, social partners and the civil society, to take an active part in attaining its objectives.

The “re-launched” Lisbon Strategy is based on sound macro-economic policies, which will provide the basis for further growth, the full use of the potential of the Single Market, and the development of a regulatory and business environment that will deliver the desired objectives at the lowest cost to business and society. It places an emphasis on economic growth, guaranteed sustainable macroeconomic conditions, and the realization of economic, social, and environmental objectives, all of which are prerequisites for the international competitiveness of Europe . It also specifically calls for action to create a friendly business environment for small and medium sized enterprises (SMEs), increased support for eco-friendly technologies, and devise a new information society initiative. Strong emphasis is also placed on research, with a call for Member States to renew their commitment to meeting the three percent target for research spending. It also argues in favor of doubling EU investment in research and development (R&D).

Conclusions

JAMA supports the Council who has shown to be dedicated to growth, employment, and innovation policies, and wants to renew Europe ’s competitiveness and increase its growth potential. The “re-launched” Lisbon Strategy involves essential reforms that can only be postponed at the risk of marginalizing Europe in a world marked by a shifting balance between established industrial powers and emerging economies – North/South, East/West – and so there is a strong momentum for stimulating economic growth. The Council showed a genuine interest in furthering economic progress in Europe , and in the forward-looking macro-economic reforms needed to realize this goal.